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Frequently Asked Questions

Will I lose my house if I declare bankruptcy?

It depends on the amount of equity available on your house. For instance, if your home has a market value of $100,000 and you have a mortgage of $90,000, then the $10,000 difference is considered an asset by your creditors. The trustee would therefore have to sell the property, or you may also pay the different in order to keep your home. If you co-own the residence with your spouse, you will have to pay half of the equity, in this case, $5,000.


What impact will bankruptcy or a consumer proposal have on my credit rating?

Bankruptcy reduces your credit rating to R9 and this rating remains on your record for 6 years after your discharge (when it is the first time filing).

The consumer proposal brings your credit rating down to an R7 and this grade remains on record for 3 years after you have fulfilled all the obligations contained in the proposal.


Can I keep my furniture if I declare bankruptcy?

The furniture in your home is exempt if its value does not exceed $6,000.


Will my bankruptcy affect my spouse?

That depends on whether or not you have joint debts. If all your debts are joint, creditors will try to collect from your spouse once you have declared bankruptcy; if you have no joint debts, your bankruptcy will not affect your spouse.


I've heard that you can file joint bankruptcy or a joint consumer proposal?

That's true when two people have joint debts. They can file for assignment or submit a consumer proposal jointly to avoid paying the fees twice.


How long does the consumer proposal procedure last?

It depends on the terms of the proposal established. However, the payment period cannot exceed 5 years.


Am I discharged from income tax debt after declaring bankruptcy?

Income tax debts are not considered secured debts. Consequently, they can be discharged. In corporate bankruptcies, however, the administrators are responsible for the at-source deductions and the GST and PST.