Personal Bankruptcy Protection

Get a fresh financial start when you need it most

Insolvency Trustee

Upfront Fee

Success Rate

What is a Personal Bankruptcy Protection?

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.

Why Choose Personal Bankruptcy Protection

Immediate protection from creditors

Stop wage garnishments and lawsuits instantly

Most unsecured debts are fully discharged

Keep essential assets in most cases

First-time bankruptcy typically completed in 9-21 months

Clear path to rebuilding your credit

Relief from overwhelming financial stress

Fresh start to rebuild your financial life

No more collection calls

Legal protection under federal law

How It Works

Consultation & Filing

We start with a confidential meeting to review your situation and explore all options. Once bankruptcy protection is confirmed as the right path, we prepare all required paperwork and file with the Office of the Superintendent of Bankruptcy.

Duties & Counselling

During the bankruptcy period, you fulfill your legal dutiesand complete two mandatory financial counselling sessions to build skills for your financial future.

Discharge & Fresh Start

Upon completing all obligations, you receive your certificate of discharge. Your debts are legally eliminated and you begin rebuilding your credit and financial life.

What happens to your credit score
after filing for Personal Bankruptcy?

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.

Rebuilding Credit After a Personal Bankruptcy

There are practical steps you can take to rebuild your credit:

Open a secured credit card immediately after discharge to begin building positive history
Pay every bill on time — utilities, phone, and rent all contribute to your overall financial profile
Keep your credit utilization low, ideally below 30% of your available credit limit and pay the balance in full every month
Avoid applying for multiple credit products at once, as each application can lower your score
Review your credit report annually to ensure accuracy and track your progress
Work with a Licensed Insolvency Counsellor or a Licensed Insolvency Trustee to create a structured rebuilding plan

How Much Does Personal Bankruptcy Protection Cost?

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.

The amount is determined by:

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.

What Debts Are Included?

Most unsecured debts can be eliminated through Personal Bankruptcy in Canada. This allows you to obtain a legal fresh start by removing the majority of your financial obligations.

Income tax, HST, GST, and other CRA debts
Credit cards
Lines of credit
Bank loans and overdrafts
Personal loans
Payday loans
Outstanding bills or accounts in collections
Student loans (if you have been out of school for at least 7 years)
And Others

Once your bankruptcy is discharged, these debts are legally eliminated and creditors can no longer pursue collection.

Certain types of debts cannot be eliminated through bankruptcy under Canadian law.

Secured Debts

Mortgages
Car loans or vehicle financing
Other secured loans tied to property or assets

Non-Dischargeable Debts

These debts generally cannot be removed through bankruptcy:

Child support or spousal support payments
Court fines, penalties, or restitution orders
Debts arising from fraud or misrepresentation
Government student loans if you have been out of school for less than 7 years

Every financial situation is unique. A licensed professional at MORATAYA Corp will review your debts, explain what can and cannot be included in a bankruptcy, and help you determine whether Personal Bankruptcy or a Consumer Proposal is the best solution for your situation.

Who Qualifies?

Common Questions Answered

Will I lose everything if I file for 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.

How long does bankruptcy stay on my credit report?

For a first-time bankruptcy, it typically remains on your credit report for 6-7 years after discharge. However, many people begin rebuilding credit immediately after discharge.

Can I keep my house during bankruptcy?

It depends on the equity in your home and provincial exemptions. We'll help you understand your options and potentially keep your home through various strategies.

Fernando Gonzalez

7 days ago

Angie Herrera

11 days ago

Gracias a ustedes por rescatarme en esta dificultad.

Emiro Torres

20 days ago

Willian Amaya

22 days ago

Recomendado en mi idioma

Francisco Alvarez

28 days ago

Jose & Patricia are incredibly friendly and helpful. They guide you to overcome out of pulse purchases & rebuild yourself financially. So, you don't make the mistake again to fall in debts. Definitely Morataya Corps is the best place to get your debts out of the way.

Karla Seda

29 days ago

Afortunadamente mi propuesta fue aceptada! Gracias a todo el equipo de Morataya por hacer realidad poder ser financieramente independiente otra vez ! Todos y cada uno son muy amables .

Glenda Tejada

35 days ago

Very satisfied and happy with all the help received during the process, I recommend them, they explain every detail.

sal sal

36 days ago

steve malik

42 days ago

I started my proposal almost 2.5 years ago, highly recommended morataya Corp. I had very high debt with line of credits and credit cards . They put in Excellent effort with a affordable monthly plan. Thanks so much Mario and the team Steve

Jesica Guevara

45 days ago

Good communication abd answered all my questions.

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Morrison Edwards

Thank you MORATAYA Corp for help me through this difficult time,special thank to my counselor Patricia Fachinetti she's very helpful and easy to communicate with.

Rances Renata

Excelente servicios Trato muy professional y siempre muy comprometidos gracias por sus servicios

Yanicel Ponce de león Hernandez

I had a great experience with this debt settlement company. Their team is professional, knowledgeable, and genuinely cares about helping people. They explained every step of the process clearly and provided excellent guidance from start to finish. I felt supported and well-informed throughout the entire experience. I highly recommend their services to anyone looking for help with debt solutions.

Oscar Romay

Muchas gracias a Patricia y la gente de Morataya en general. Siempre están el pendiente de cada momento del proceso, muy buen trabajo! Gracias!!