Financial Insolvency & Personal Bankruptcy

No. All debts factor into your personal bankruptcy. However, some debts will carry through after bankruptcy and require regular payments (e.g., child support or related debts).

No. In the Greater Toronto Area, the following items are exempt from seizure:

1. Personal effects no more than $5,650.00
2. Household goods no more than $11,300.00
3. Tools-of-trade no more than $11,300.00
4. Motor vehicles no more than $5,650.00
5. Home Equity no more than $10,000.00

First, you must meet with a Licensed Insolvency Trustee (previously known as a Trustee in Bankruptcy) at Harris & Partners Inc. at one of our locations in Southern Ontario to review your financial situation.

Your Licensed Insolvency Trustee will then advise you on your best options.

Once you decide that personal bankruptcy is the best solution, the trustee will prepare the proper documents for you to sign and submit to the official receiver. At this point the bankruptcy is in effect. Your trustee then notifies all creditors of your official status.

1. Fully disclose all assets and liabilities
2. Attend two financial counselling sessions
3. Inform the trustee of any material change of income
4. Inform the trustee of any change of address
5. Attend all meetings called by the trustee

If this is a first bankruptcy and all duties are performed fully (and there are no objections), the bankruptcy will be discharged in nine months.

Yes. All garnishments from civil court will be stayed immediately.

Yes. If the bankrupt person(s) finished studies more than seven years ago, the student loan will, in effect, be wiped out upon the bankrupt’s discharge. If studies ended fewer than seven years ago, the student loan will survive the bankruptcy (i.e. the loan must be repaid).

Yes, debts to Revenue Canada are included in the bankruptcy.