Bankruptcy Help You Can Count On

For over 30 years, our Canadian bankruptcy trustee firm has helped more than 100,000 individuals become debt free

About Bankruptcy

Filing bankruptcy is a big step but it does not have to be an overwhelming one. At Spergel, we have been helping clients through personal bankruptcy in Canada for 30 years, and we will guide you through each step. A bankruptcy will allow you to live your life unburdened by the debts of the past.


What is a bankruptcy?

In Canada, a bankruptcy is legislated under the Bankruptcy and Insolvency Act (BIA) and can only be filed with a Licensed Insolvency Trustee (LIT). Bankruptcy is a legal process that you enter into that allows you to release your debts, stop collection calls, end wage garnishments and get on with your life. A bankruptcy legally protects you from your creditors. 


What debts can be included in a bankruptcy in Canada?

Most unsecured debts such as credit cards, payday loans, lines of credit and tax debts may be included in a bankruptcy. Government student loans may also be included in a bankruptcy if you have been out of school for a minimum of 7 years. When you file a bankruptcy, you will be required to provide information about your debts i.e. a list of your creditors and an estimate of how much you owe. 

Debt Freedom Calculator

Reduce your debt by up to 80%

With a Spergel Consumer Proposal, you can reduce what you owe and become debt-free faster.

We’re having trouble calculating your options. For further assistance, you may request a call or use the LiveChat function to contact a Spergel representative who will be able to assist you immediately.

Enter your total unsecured debt. Unsecured debt means debt that is not tied to an asset or collateral like credit cards. Do not include any secured debt (like mortgages, car payments, etc.).
A Spergel Consumer Proposal is structured into monthly payments paid over a period of up to 5 years. You will not pay additional interest or fees during that time.

Who can file for a bankruptcy?

Under the Bankruptcy and Insolvency Act, you may declare bankruptcy in Canada if:

a. you owe more than $1000 and
b. you are unable to pay your debts as they come due and
c. you either reside, do business, or have property in Canada


What assets can you keep during a bankruptcy?

Contrary to popular belief, most people do not lose their homes and/or car in a bankruptcy. When filing a bankruptcy in Canada, individuals are able to keep certain assets such as household goods, personal belongings, one vehicle up to a certain (provincial) limit, and RRSPs, excluding contributions made in the last 12 months. Learn more about bankruptcy exemptions in Ontario

Personal Bankruptcy Stories

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Frequently Asked Questions

What is surplus income?

In a bankruptcy surplus income is a calculation established by the government based on household income and the number of people within that household. The trustee must use this calculation to determine if you are required to make payments into your bankruptcy and what that amount will be. You will be required to provide proof of income monthly for the trustee to ensure the appropriate amount is paid. Learn more about surplus income in a bankruptcy.

Will filing a bankruptcy affect my spouse or common-law partner?

Often people are apprehensive that filing a bankruptcy will have a negative affect on their spouse or common-law partner. In most cases, there is no affect at all. When you take on debt, that debt is yours and yours only unless you co-sign any debt with a spouse, common-law partner, or anyone else. When you file a bankruptcy, any co-signed debt is the full responsibility of other co-signer. He or she now must pay 100% of the debt.

Debt Help Learning Centre

If you’re just starting to explore your options, visit our learning centre to learn from our articles and resources to start on your path to debt freedom, and when you’re ready, our trustees are always available to listen.
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