Frequently Asked Questions


Q: If I file for bankruptcy or make a proposal, is my spouse responsible for any unpaid amounts?
A: No, not unless your spouse has guaranteed or co-signed your debts.
Q: What happens if I have a debt owed to the Government for taxes?
A: The tax debt will be included in the bankruptcy or proposal along with all the other debts
Q: Can I continue to make my car payment even though I am filing a proposal or going bankrupt?
A: Yes, as long as the financial institution that you have the loan with is in agreement, and you can afford the payment, then in most cases you can keep making the payments and retain the vehicle.
Q: When I am discharged from bankruptcy will it eliminate all my outstanding debt?
A: It will eliminate all debts except for: secured debts, that you have elected to continue to pay, such as a mortgage or car payment; court fines or other fines including traffic tickets; student loans (if less than seven years since ceasing to be a full time student); and debt obtained by fraudulent misrepresentation.
Q: Will I lose all my assets in a bankruptcy?
A: Only those assets that are not exempt assets.
Q: How much will bankruptcy cost?
A: The fee is indexed to your income and expenses via a government set standard. The monthly payment you will be required to make will be calculated and explained to you by the Trustee prior to proceeding with the bankruptcy.
Q: What if I have judgement against me or a wage garnishment?
A: The proposal or bankruptcy will essentially stay (stop) these proceedings against you.
Q: Is the Trustee the same as a lawyer?
A: No, the Trustee is appointed act as an intermediary in order to facilitate your proposal or bankruptcy but also to protect the rights of your creditors in the process.
Q: How will a proposal or bankruptcy affect my credit rating and will I ever get credit in the future?
A: Your ability to reestablish credit in the near future will largely depend on your income, asset base, and how long ago you filed the proposal or bankruptcy. Usually it takes only a few years to reestablish your credit. To learn more specifically about credit bureaus, credit reporting and the relevant criteria in Canada, visit www.fcac.gc.ca