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Frequently Asked Questions
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How long will I be in bankruptcy?

A first time bankrupt will be eligible for a discharge after either 9 months or 21 months, depending on household income. A second time bankrupt will be eligible for a discharge after either 24 months or 36 months, depending on household income. A person filing for bankruptcy three or more times must appear in Bankruptcy Court to find out the conditions and length of their discharge.
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If I file for bankruptcy or a proposal, does my spouse also have to file?

No, not necessarily. Other than joint debt, spouses are not automatically responsible for each other’s debt. However, if there is significant debt that has been signed for by both parties, it may be inevitable that your spouse may have to file too.
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I owe a tax debt to the Canada Revenue Agency (CRA). Can this debt be included?

As long as the debt to the CRA is unsecured, CRA claims are captured in a proposal or bankruptcy proceeding.
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Can my student loan debts be discharged from a proposal or bankruptcy

Government student loans will survive a bankruptcy or a proposal if you file either of these proceedings within seven years from your last day of school. If you are uncertain of this date, you will need to contact student loans directly at: 1-888-815-4515 (National Student Loans) and 1-800-387-5604 (Ontario Student Loans).
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Will I lose my home or other assets?

In a proposal, your assets remain your property. Keeping these assets may increase the cost of your proposal. In a bankruptcy scenario, your assets vest in your Trustee but you have the option of purchasing them back. Certain assets may be partially or fully exempt from seizure. We can provide you with more information specific to your situation.
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Once I have finished my proposal or bankruptcy, how long will it stay on my credit report?

First-time bankruptcy will be reported on your credit report for seven years from the date of your discharge. Second (or more) bankruptcies will be reported on your credit report for fourteen years from the date of your discharge. A consumer proposal will be reported on your credit report for three years from the date that you complete your proposal.
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Who is responsible for updating my credit report?

Upon discharge from bankruptcy or completion of your proposal, the Superintendent of Bankruptcy will forward information to your credit report. If there are any errors, it is your responsibility, not your Trustee’s, to correct them.
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What is credit counselling?

Credit counselling consists of two sessions. In the first session you will discuss money management, spending and shopping habits, warning signs of financial difficulties and obtaining and using credit. The second counselling session is a follow-up on the matters discussed in the first session as well to identify non-budgetary causes of insolvency (gambling, substance abuse etc.), help you understand your behaviour in financial management and discuss external resources to achieve and maintain economic stability.
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What can I expect from a consultation with a Trustee or staff member?

The consultation will be used to discuss the root causes of insolvency; to make an inventory of your assets and how each asset will be impacted by the process, gather information about your creditors, and to review household income. The Trustee will also need to know about any assets that have been disposed of. Once the aforementioned topics have been discussed, the Trustee (or staff member) will discuss your options.
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I am currently in bankruptcy and not discharged. Can I file another bankruptcy?

No. An undischarged bankrupt cannot file another bankruptcy. You may be able to file a proposal, though.
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My wages are being garnished. Is it too late to file now?

You can still file even though a creditor has obtained a garnishment order against your wages. Some monies may be recoverable and future garnishments will stop.
t

How long will i be in bankruptcy?

A first time bankrupt will be eligible for a discharge after either 9 months or 21 months, depending on household income. A second time bankrupt will be eligible for a discharge after either 24 months or 36 months, depending on household income. A person filing for bankruptcy three or more times must appear in Bankruptcy Court to find out the conditions and length of their discharge.
t

If i file for bankruptcy or a proposal, does my spouse also have to file?

No, not necessarily. Other than joint debt, spouses are not automatically responsible for each other’s debt. However, if there is significant debt that has been signed for by both parties, it may be inevitable that your spouse may have to file.
t

I owe a tax debt to the Canada Revenue Agency (CRA). Can this debt be included?

As long as the debt to the CRA is unsecured, their claims are captured in a proposal or bankruptcy proceeding.
t

Can my student loan debts be discharged from a proposal or bankruptcy

Government student loans will survive a bankruptcy or a proposal if you file either of these proceedings within seven years from your last day of school. If you are uncertain of this date, you will need to contact student loans directly at: 1-888-815-4515 (National Student Loans) and 1-800-387-5604 (Ontario Student Loans).
t

Will I lose my home or other assets?

In a proposal, your assets remain your property. Keeping these assets may increase the cost of your proposal. In a bankruptcy scenario, your assets vest in your Trustee but you have the option of purchasing them back. Certain assets may be partially or fully exempt from seizure. We can provide you with more information specific to your situation.
t

Once I have finished my proposal or bankruptcy, how long will it stay on my credit report?

First time bankruptcy will be reported on your credit report for seven years from the date of your discharge. Second (or more) bankruptcy will be reported on your credit report for fourteen years from the date of your discharge. A consumer proposal will be reported on your credit report for three years from the date that you complete your proposal.
t

Who is responsible for updating my credit report?

Upon discharge from bankruptcy or completion of your proposal, the Superintendent of Bankruptcy will forward information to your credit report. If there are any errors it is your responsibility, not your Trustee’s, to correct them.
t

What is credit counselling?

Credit counselling consists of two sessions. In the first session you will discuss money management, spending and shopping habits, warning signs of financial difficulties and obtain and using credit. The second counselling session is a follow-up on the matters discussed in the first session as well to identify non-budgetary causes of insolvency (gambling, substance abuse etc.), help you understand your behaviour in financial management and discuss external resources to achieve and maintain economic stability.
t

What can I expect from a consultation for a Trustee of staff member?

The consultation will be used to discuss the root causes of insolvency; to make an inventory of your assets and how each asset will be impacted by the process; gather information about your creditors; review household income. The trustee will also need to know about any assets that have been disposed of. Once the aforementioned topics have been discussed, the trustee (staff member) will discuss your options.
t

I am currently in bankruptcy and not discharged. Can I file another bankruptcy?

No. An undischarged bankrupt cannot file another bankruptcy. You may be able to file a proposal though.
t

My wages are being garnished. Is it too late to file now?

You can still file even though a creditor has obtained a garnishment order against your wages. Some monies may be recoverable and future garnishments will stop.

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