FAQ

GENERAL MATTERS -Miscellaneous

Who Can File Bankruptcy or Make a Proposal?

You can file bankruptcy or make a proposal if:

• you are not presently in bankruptcy* and;
• you owe at least $1,000 and;
• you are not able to meet your regular payments as they become due; or
• you would not be able to pay all of your debts if all of the assets you are not allowed to keep are sold.

*People who are currently bankrupt can file a proposal but special provisions and approvals apply.

You should be aware that any unsecured creditor to whom you owe more than $1,000 could try to force you into bankruptcy. This is called a Petition for a Bankruptcy Order. In this case, the creditor must prove that you have committed an act of bankruptcy, such as not paying your bills as they came due. The Court reviews the facts and, if the petition is allowed, issues a Bankruptcy Order that places you in bankruptcy with a Trustee selected by the petitioning creditor.

Do I have to be living in Canada to file bankruptcy?

No, as long as you lived or carried on business in Canada in the last 12 months you may file bankruptcy.

Can I file bankruptcy more than once?

Yes, but it will be harder to get out of bankruptcy after the first time. After each time, the courts become more unsympathetic and could impose more sanctions on getting out of bankruptcy. The interval between filings and the reasons for each filing are also taken into consideration. People appearing not to be learning anything from their new start should not expect the Court’s sympathy.

We believe that people experiencing financial difficulty and considering bankruptcy a second time, should consider filing a proposal rather than a second or third bankruptcy.