Personal bankruptcy protection, administered under the Bankruptcy and Insolvency Act (BIA), provides immediate legal protection from creditors and a path to becoming debt-free. While it should be considered carefully, bankruptcy can offer the fresh start you need when other options aren’t viable.
As Licensed Insolvency Trustees, we guide you through every step of the process, ensuring you understand your rights and obligations. Many people complete their bankruptcy in as little as 9 months, emerging with a clean slate to rebuild their financial future.
Bankruptcy is not the end, it’s a new beginning. With proper planning and our guidance, you can rebuild your credit and financial stability after discharge.
Consultation & Filing
Personal bankruptcy has a temporary impact on your credit report. When you file for bankruptcy protection, it is recorded as an R9 rating, which indicates that your debt has been written off or turned over to collections.
For a first-time bankruptcy, this notation remains on your credit report for six to seven years after your discharge date, depending on the credit bureau. For a second bankruptcy, it can remain for up to fourteen years. Once the period has passed, the bankruptcy is removed from your report entirely.
The cost of filing Personal Bankruptcy in Canada depends on your financial situation, income level, and whether you are required to make surplus income payments under federal guidelines.
In most cases, individuals make structured monthly payments during the bankruptcy period. These payments cover the administrative costs required under Canadian bankruptcy law.
One of the key advantages is transparency, bankruptcy costs are regulated by the federal government and administered by a Licensed Insolvency Trustee, so there are no hidden fees.
For many first-time bankruptcies, the minimum base cost starts at approximately $2,700, which can typically be paid through affordable monthly payments.
The length and total cost of bankruptcy depend on your specific financial situation.
If your income exceeds the government surplus income threshold, additional payments may be required during the bankruptcy period.
During bankruptcy, interest stops accumulating and collection actions stop, giving you immediate financial relief while you work toward a fresh start.
A Licensed Insolvency Trustee at MORATAYA Corp can review your financial situation and explain exactly what your bankruptcy payments would look like.
Certain types of debts cannot be eliminated through bankruptcy under Canadian law.
Secured Debts
Non-Dischargeable Debts
These debts generally cannot be removed through bankruptcy:
No. Canadian bankruptcy laws allow you to keep essential assets like basic household items, tools of trade, some investments, and in most cases, your primary vehicle up to a certain value. Exemptions vary by province.
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