People often ask “What is the bankruptcy process in Canada?“If it is determined that a Consolidation Loan is not possible, and an Informal Arrangement or Proposal cannot be made, the most responsible action to take is a Bankruptcy. The first step is the initial Assessment which determined the need for bankruptcy.

This first step is critical in determining that this is the only viable alternative. The moment the papers are signed, your are immediately relieved from having to deal directly with your creditors. Every phone call or correspondence is referred to our office. No one can sue you or garnish your wages.

If this is your first Bankruptcy, the entire process takes nine months. During this time a number of “Duties” are performed by the bankrupt and at the end of this process you are “Discharged” with your debts cancelled.

These “Duties” include:

  • Telling the trustee (Richard Killen & Associates Ltd.) what your assets are and how much money you owe and to whom
  • Reporting every asset you disposed of in the past year
  • Disclosing everything worth $500 or more that you gave away in the past 5 years if you were insolvent at the time you gave it away
  • Providing the trustee with all required books, records or documents
  • Giving the trustee all your credit cards, even if there is nothing owing to them
  • Placing all your assets in the control of the trustee making any “Surplus Income Payments” during the bankruptcy
  • Attending all meetings and examinations as required and answering all questions truthfully, including 2 counselling sessions provided by the trustee
  • Co-operating with the trustee and communicating any changes as it relates to home address, employment, income and expenses.
  • Here is a typical timeline outlining the entire process.

Watch our Video on the bankruptcy process

For more information on the bankruptcy process in Canada, please contact our office.


cup half full book

question and answer

Contact Richard Killen
FREE Non-Commitment Consultation

Contact us now for a fresh start!

“Serving Toronto & the GTA for over 22 years.”

[recaptcha size:compact]

Recent Blog Posts

About Richard Killen & Associates

Since 1992, Richard Killen & Associates, a Licensed Insolvency Trustee, have helped thousands of people resolve their financial problems. With 25 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.

Contact us now for a fresh start!

"Serving the GTA for 25 years."