Bankruptcy is a legal process that eliminates most of your debts and provides immediate relief from legal actions by creditors. The process requires you to sign over most of your personal property to a Licensed Trustee in Bankruptcy. The Trustee then sells your property and with the money pays off as much of your debt as possible. Any remaining debt, with certain exceptions such as court fines, alimony or child support is legally eliminated.
The process allows you to retain certain property, such as clothing, furniture, a motor vehicle and tools required for your job. The law regarding exempt property varies from province to province, is complex and depends on individual circumstances.
To qualify for Bankruptcy you must: