Bankruptcy Alternatives Blog

How To File Bankruptcy in Canada

Before you decide to file bankruptcy in Canada, review your options.  Perhaps bankruptcy isn’t necessary.  You have other choices, such as:

• Pay off your debts on your own;
• Get a debt consolidation loan;
• Consider credit counseling, also known as a debt management plan;
• If you are American, consider a Chapter 13 Wage Earner Plan;
• If you are Canadian, consider a consumer proposal.

Only if all of these other bankruptcy alternatives are not possible should you consider filing bankruptcy in Canada.  Here are the steps required:

1. The first step is deciding you need help with your money problems;
2. Arrange for a free initial consultation with a bankruptcy Canada trustee;
3. After making your decision, the trustee will prepare the bankruptcy paperwork, and you sign the bankruptcy documents;
4. You then perform your duties;
5. Get your bankruptcy discharge, which eliminates your debts.

It is important that you understand the steps involved, and research your options, because only you can decide whether or not bankruptcy in Canada is the correct option for you.