-
Step 1
Consider the consequences of your decision. Bankruptcy will exert a profound impact on your entire life. You'll receive a bad credit rating and credit card companies will reject you. You may want to try another alternative first, like consolidating your debt or seeing a financial advisor.
-
Step 2
Talk to a bankruptcy trustee. He will advise you on your current situation. Bankruptcy trustees are government regulated, so your rights are protected and their rates are set. You must know exactly what you are doing when you file for bankruptcy.
-
Step 3
Find out how much property you are allowed to keep. Search the bankruptcycanada.com website to see which property you can keep for each province or territory. Examples of property are cars, household items and clothing. You can keep a certain amount of each.
-
Step 4
Determine how much of your wages you will be required to pay to the Bankruptcy Trustee. Go to bankruptcycanada.com and fill out a form listing your income, assets and debts. Click the "Click Here" button at the bottom of the "Personal Bankruptcy Predictor" page. You will receive an evaluation telling you how much you will be required to pay.
-
Step 5
Offer to pay some of the debt back if you have enough extra income coming in regularly. Check with your bankruptcy trustee to see if this is an alternative for you. Make sure the steps are explained to you. For example, you may be in bankruptcy longer than someone who does not offer to pay back some of the money. This offer is called a proposal.
-
Step 6
Attend the required counseling. You can be counseled privately by your trustee or you can attend small group counseling. There is a cost for this but you must attend in order to have your bankruptcy discharged.
-
Step 7
Read about special situations like student loans and alimony at bankruptcycanada.com. Alimony still has to be paid and some student loans have to be paid depending on the time between the loan and your bankruptcy.
