Bankruptcy

A creditor is someone you owe money to, such as a person, bank, credit card company or other lender. You are the debtor – the person who owes money to the creditor.

Last Reviewed: October 2020

Yes. But this is usually a last resort. The creditor will try other tactics first, such as calling you and sending you letters. If these methods are unsuccessful and they believe you are able to pay, they will consider taking you to court.

Last Reviewed: October 2020

If you are served with (given) court documents, do not ignore them! Get legal advice immediately. You should respond to the court documents. If you do not respond, the court can make a decision without hearing your side of the story.

The court will determine if you owe the money or not. Usually, whether you owe the money is not in dispute. Usually the creditor can easily prove the debt, such as with an agreement. The judge will issue a judgment, which says you owe the money to the creditor. The creditor can then take steps to enforce the judgment, such as seize your property, or garnish your bank account or wages.

Last Reviewed: October 2020

Maybe. To seize (take) your property, a creditor must have a court order allowing it to do so OR your written permission to place a lien on the property.

A creditor usually only gets a court order if they believe your property has enough re-sale value to cover the amount you owe. Otherwise, it is not worth the creditor’s time and money (legal fees) to do this.

Sometimes when you borrow money, one of the conditions of the loan is you allow the lender to place a lien on your property. This agreement must be in writing. You should know if you signed such a document. For example, if you bought an item on a ‘buy now, pay later’ plan, the contract might have a clause giving the creditor permission to lien the goods if you do not pay. Check your loan documents.

In many provinces, basic household goods are exempt from seizure – they cannot be taken.

Last Reviewed: October 2020

No. You can only go to jail if you are convicted of a criminal offence. Creditors file lawsuits in civil court. A judge can issue a judgment against you. To collect on the judgment, the creditor can garnish your bank accounts or wages, seize your property or put a lien on your house.

Last Reviewed: October 2020

Collection agencies act on behalf of creditors – people trying to collect money from you, such as a bank, credit card company or other lender. Collection agencies must follow rules set by provincial governments. The province they operate in must license them.

Creditors can hire collection agencies to try to collect the debt. If the collection agency cannot collect, they will notify the creditor of their attempts. The creditor then decides what to do. Sometimes collection agencies buy the debt from the creditor. The collection agency will try to collect and then can take you to court if they cannot.

For more information on Collection Agencies in Alberta, see CPLEA’s Collection Agencies tip sheet.

Last Reviewed: October 2020

The rules are slightly different in each province. However, generally collection agencies cannot:

• Make calls so often and in a manner that is considered harassment
• Make calls during certain times of the day. These times are different across the country. In Alberta, collection agencies cannot call or visit you between 10pm and 7am.

If you think a collection agency is harassing you, contact the consumer protection office in your province.

For more information on Collection Agencies in Alberta, see CPLEA’s Collection Agencies tip sheet.

Last Reviewed: October 2020

A Licensed Insolvency Trustee (LIT) is a person licensed by the Canadian Superintendent of Bankruptcy. A LIT can:

• give a debtor information and advice about the bankruptcy process and alternatives to bankruptcy
• administer consumer proposals and bankruptcies
• manage assets held in trust
• make sure that both the debtor’s rights and the creditor’s rights are respected

A LIT is ethically and legally obligated to provide you with objective, unbiased advice on your options. They will not ‘sell’ you into bankruptcy. If another option makes sense, the trustee should advise you of this. You must use a LIT to file a consumer proposal or bankruptcy.

A LIT is not the same as a financial advisor. A financial advisor (who is not also a LIT) is not licensed and is not qualified to advise you on your options.

To find a Licensed Insolvency Trustee, visit the Government of Canada’s website.

Last Reviewed: October 2020

You have options. Bankruptcy is only a last resort. Some options include:

• Negotiating a payment plan with your creditors or collection agency on your own (sometimes called an informal proposal)
• Credit counselling
• Debt consolidation loan
• Debt Management Plan
• Consolidation order (also known as an Orderly Payment of Debts)
• Consumer proposal

See the next section for more information on these options.

If these options do not work, then you may have to declare bankruptcy. See below for more information on declaring bankruptcy.

If you are curious about your options, you can contact a Licensed Insolvency Trustee or a qualified credit counsellor.

Last Reviewed: October 2020

Maybe. You can try to make an agreement with the creditor. For example, if you owe $2000, you could offer to pay $250 from each pay cheque until the debt is paid off. The creditor does not have to negotiate with you but many creditors will to avoid the costs of taking legal action.

This may work if you have one or a few debts. If you have many creditors, trying to negotiate with each creditor may be difficult.

Last Reviewed: October 2020

If you have debts to many different creditors, you have two options other than bankruptcy or a consumer proposal:

• consolidation loan
• consolidation order

See below for more information on each.

Last Reviewed: October 2020

A credit counselling agency can ask your creditors to agree to consolidate your unsecured debts into one affordable payment. You will have to pay back 100% of your debts. The credit counselling agency will collect the payment from you and pay your creditors. You will have to pay the agency an administrative fee.

Last Reviewed: October 2020

A consolidation loan is a loan from a financial institution (such as a bank) that pays all or most of your debts. Then you repay the consolidated amount to your bank. The benefit? One payment with usually a lower interest rate (compared to different interest rates on many debts). For example, if you have unpaid balances on five credit cards, you may be able to get a consolidated loan to pay them all off and then you would have a single payment to the bank each month.

This solution often works when your debts are not too large and your future income is secure. The interest rate on the consolidation loan is often lower than what you are paying your creditors (especially if your debts are credit card debts). You can usually save money in interest charges. However, if the bank charges a high interest rate, this solution may not be ideal.

If the bank wants security for the loan (property as collateral for the debt), make sure you can make the payments. Otherwise, if you miss the payments, the bank can seize the security (such as your house or car).

Last Reviewed: October 2020

A consolidation order is a court order consolidating personal unsecured debts. This order is available through the Orderly Payment of Debts program, created under Canada’s Bankruptcy & Insolvency Act. This program is only available in Alberta, Saskatchewan, Prince Edward Island and Nova Scotia.

The provincial court issues a consolidation order – consolidating your unsecured debt into one monthly payment. The payment is calculated based on what you can afford and approved by your creditors. You will have to pay back 100% of your debts plus fixed 5% interest. You pay the court and the court makes payments to your creditors.

A consolidation order is not available for business debts.

Last Reviewed: October 2020

A consumer proposal is a settlement with your creditors. It is a formal procedure governed by Canada’s Bankruptcy and Insolvency Act. It is only available to individuals (not businesses) owing less than $250,000 (excluding debts secured by your principal residence). (If you owe more than $250,000, you must file a Division I proposal.) If you own more than one home, only the mortgages on your principal residence may be excluded.

Usually you will pay back between 10% and 90% of your debts, based on what you can afford to pay. A Licensed Insolvency Trustee (LIT) administers the consumer proposal – putting together a proposal and negotiating with creditors. You make payments to the trustee and the trustee pays money to your creditors.

The advantages of a consumer proposal are:

• you keep all of your assets
• lawsuits against you by unsecured creditors will be stopped
• you do not have to declare bankruptcy
• it is simpler than a Division I proposal

There are fixed fees (about $1800 that mostly goes to the LIT) and the LIT receives 20% of the funds available for distribution.

For more information on consumer proposals, see the Government of Canada’s website.

Last Reviewed: October 2020

A Division I proposal is a settlement with creditors. It is available for individuals and businesses. There is no limit on how much money you owe.

Usually the borrower (individual or business) will pay back between 10% and 90% of your debts, based on what they can afford to pay. A Licensed Insolvency Trustee (LIT) administers the Division I proposal – putting together a proposal and negotiating with creditors.

If you do not follow through with the proposal, the LIT or creditor can apply to court to cancel the proposal and place you in bankruptcy.

For more information on Division I proposals, see the Government of Canada’s website.

Last Reviewed: October 2020

No. You cannot use a consolidation order or consumer proposal for business debts.

You can still try one or more of the following:

• negotiating a repayment plan with creditors or a collection agency
• applying for a consolidation loan at a financial institution (such as a bank)
• submitting a Division I proposal

If you are negotiating a repayment plan or applying for a consolidation loan, make sure you understand what you are signing. For example, a creditor or bank may ask you to sign a personal guarantee as a guarantor. A guarantor (in this case, you) is liable for the debts of the borrower (in this case, the business). If the borrower defaults, the guarantor must pay the amount owing. You should get legal advice before signing a guarantee.

Last Reviewed: October 2020

Remember, by the time you reach this point, your credit rating may already be severely compromised. Restoring your credit rating takes time, it is not automatic.

The Credit Bureau is notified when you enter into an arrangement described above. You will be assigned a lower credit rating score. The arrangement remains on your credit score for several years after you have completely repaid your debts.

All of these options have a long-term effect on your credit rating. One option does not necessarily have a better or worse effect on your credit rating. It depends on your circumstances.

For example:

• You get a consolidation order with a five-year repayment plan. When you are done repaying, your lowered credit score remains for another two years. Total effect: 7 years.
• You address your debt through a consumer proposal with a five-year repayment plan. When you are done repaying, your lowered credit score remains for another three years. Total effect: 8 years.
• You declare bankruptcy and you are discharged after 9 months. After your discharge, your lowered credit score remains for another six years. Total effect: about 7 years.
• You declare bankruptcy a second time. After your discharge, your lowered credit score can remain for up to 14 years.

You may or may not be able to get credit during one of the processes. No one is ever required to give you credit. Your ability to get and use credit after your debts are repaid depends if you are able to convince lenders that you can repay the new debt. Make sure your credit record is updated and that you keep all documents for reference by future lenders.

The issue of the effect on your credit rating is complex. Consider contacting a Licensed Insolvency Trustee for more information and advice.

Last Reviewed: October 2020

Bankruptcy is one option to help people cope with financial crises. It is a formal legal proceeding governed by Canada’s Bankruptcy and Insolvency Act. Bankruptcy allows a debtor (person who cannot repay their debts) to start afresh by freeing them of most of their debt. More specifically, the debtor signs over all of their assets (except those the law says are exempt and that the debtor can keep) to a Licensed Insolvency Trustee. The debtor is the bankrupt. The trustee then uses or sells the assets to pay the bankrupt’s creditors.

You must be insolvent to file for bankruptcy. To be insolvent, you must:

• owe at least $1000, and
• not be able to meet your debts as they become due

Filing for bankruptcy stops all actions by unsecured creditors, such as wage garnishments and lawsuits.

Last Reviewed: October 2020

Yes, but it is not common.

There are generally two ways a person can go into bankruptcy:

1. The person makes an “assignment” into bankruptcy. This is also called voluntarily “going into”, “declaring” or “filing for” bankruptcy.
2. Creditors can ask the court to make an order that a person is bankrupt. This is not common.

Bankruptcy is automatic if the creditors or the court reject a Division I proposal.

Last Reviewed: October 2020

You must contact a Licensed Insolvency Trustee. To find a Licensed Insolvency Trustee, visit the Government of Canada’s website.

Last Reviewed: October 2020

It depends on the length and complexity of your case. The simplest cases start at $2000 plus GST and counselling costs.

You do not necessarily pay this fee upfront. Often, your trustee is paid out of money received from selling your assets. If you have no assets available to sell, the trustee can ask you for a retainer or ask that you pay fees and expenses over time. Most firms offer payment plans that allow you to pay costs over time.

The Government of Canada sets filing fees and trustee fees.

Last Reviewed: October 2020

You will go through several steps during bankruptcy. Below are the twelve most common steps. The process and order of steps looks different for everyone. No two bankruptcies are the same.

Step 1: Contact and meet with a Licensed Insolvency Trustee. To find a Licensed Insolvency Trustee in your area, visit the Government of Canada’s website.

Step 2: Work with the trustee to complete the required forms. The trustee files the bankruptcy with the Office of the Superintendent of Bankruptcy (OSB). You are then formally declared bankrupt. From this point on, the trustee deals directly with your creditors.

Step 3: Sign over all of your assets to your trustee (except for the exemptions). “Assets” includes all the assets you have at the time you file for bankruptcy, including your credit cards, as well as any that you get during the time of your bankruptcy. You cannot sell or give away any assets assigned to the trustee.

Step 4: Give the trustee your T-4 slips and any other information they need to complete outstanding tax returns to the date of bankruptcy. The day you file for bankruptcy is treated like the end of your tax year. In the year you file for bankruptcy you must file two different tax returns (one pre-bankruptcy and one post-bankruptcy). Income tax debt is included in your bankruptcy, although you may have to pay it separately. Any refund you are entitled to is an asset that will come to your trustee for your creditors.

Step 5: Trustee notifies your creditors. There may be a meeting of your creditors. This depends on the size of your estate and whether the creditors or OSB request one. Meetings are usually not held for personal bankruptcies. The purpose of the meeting is to:

• Give creditors information about the bankruptcy
• Confirm the trustee’s appointment
• Appoint up to five inspectors to supervise the administration of your bankruptcy
• Allow creditors to give directions to the trustee

Step 6: Trustee sells your assets, and you make payments to your trustee. Your trustee distributes these payments to your creditors. The trustee calculates your payments based on your income, family income, income standards issued by the OSB, and your personal and family situation.

Step 7: Attend an examination under oath by an OSB officer. The purpose of the examination is to question you about your conduct, the causes of the bankruptcy, and the disposition of your property.

Step 8: Pay and report to your trustee monthly. Each month, you must report your household income and living expenses and any change in your family situation. You must also provide copies of your pay stubs. Your trustee decides if your net income was higher than the limit allowed by law for you to live (“surplus income”). If you have any surplus income, you must make a payment each month to the trustee. The more you earn, the more you must give the trustee for the benefit of your creditors. You must also keep your trustee informed as to where you are living, respond to the trustee’s requests and help the trustee as required. If you miss a payment to your trustee, your discharge date will be postponed.

Step 9: Attend two credit counselling sessions. The purpose of these sessions is to help you learn about and understand the causes of your bankruptcy, as well as help you manage your finances in the future. To be eligible for an “automatic 21 month discharge”, you must take these two credit counselling sessions. Counselling can be one-on-one (you and your trustee). It can also be in a group with other bankrupts and your trustee. If you have little or no income, are a first time bankrupt and co-operate with your trustee, you could be discharged in nine months.

Step 10: Trustee reports to the OSB on your actions during the bankruptcy. This report outlines your current financial situation and recommends whether you should be discharged from your debts. If either you or a creditor does not agree with the trustee’s recommendations, you or the creditor may ask the trustee for mediation. If you do not reach an agreement on the conditions for your discharge through mediation, the trustee must apply to the court for a hearing.

Step 11: Attend a discharge hearing (if required). Usually a first-time bankrupt with little or no income is automatically granted a discharge nine months after filing for bankruptcy. If you are granted an automatic discharge, there is no court hearing – your trustee sends you a copy of the discharge. If you have been bankrupt before, or do not qualify for an automatic discharge, the trustee contacts the court for a date to hear the application for discharge. The court chooses one of the following:

• Absolute discharge. You do not have to repay what remains of the unsecured debts you had at the date your bankruptcy was filed (except for excluded debts).
• Conditional discharge. You must fulfill certain conditions beforehand, such as paying a certain amount of money, possibly over time.
• Suspended discharge. This is an absolute discharge that does not take effect until a future date.
• Discharge refused.

If a discharge is adjourned “sine die”, you are essentially stuck in bankruptcy and all duties remain in force. Once the trustee closes the file (or gets discharged from your case), you will have no protection from your creditors. Generally this happens when the bankrupt consistently does not complete their duties.

Step 12: Bankruptcy is discharged. Once you are discharged, you no longer have to repay what is left of the unsecured debts you had at the date of bankruptcy, except for excluded debts.

Last Reviewed: October 2020

A discharge marks the end of your bankruptcy period. You can be automatically discharged if you meet certain conditions. If someone challenges your discharge, the court makes a decision.

Last Reviewed: October 2020

There are several advantages to filing for bankruptcy:

• A creditor cannot send a collection agency after you, start a legal action or garnish wages. You are protected.
• Your unsecured debts are eliminated.
• It can be relatively quick.
• It can be less expensive than other options.
• If you have little or no income, are a first time bankrupt and cooperate with your trustee, you can be discharged in as little as nine months.

Last Reviewed: October 2020

There are many reasons why you may want to avoid declaring bankruptcy:

• You may lose certain assets (such as valuable cars and homes). You keep your assets with a consumer proposal or Division I proposal.
• You must keep detailed records of your income and expenses while you remain bankrupt.
• Increased income means increased payments to your trustee. Each month you must report your income to your trustee. With a proposal, your payments stay the same regardless of your income.
• A bankruptcy is not necessarily over in 21 months.
  • If you have significant surplus (extra) income or you are a repeat bankrupt, your bankruptcy may not end in 21 months. Each year the government says how much you can earn while bankrupt (depending on the size of your family and other factors). If you have significant surplus income, your bankruptcy will likely be extended.
  • If you owe more than $200,000 of personal income tax debt that represents 75% or more of your total unsecured debt, your bankruptcy will not end in 21 months.
  • If you have been bankruptcy before, your bankruptcy will not end in 21 months.
  • If a creditor believes you could have solved your debt issues with a consumer proposal instead, they may oppose your discharge.
• There may be a stigma (real or perceived) about bankruptcy.
• Bankruptcy cannot deal with some debts. For example: certain student loans, maintenance payments and debts obtained through false pretenses.

Last Reviewed: October 2020

Usually not many people.

If you have significant assets (exceeding $10,000), your trustee places a notice in the “legal” section of the newspaper notifying creditors of the date of the meeting of creditors (if there is one). If you do not have many assets (under $10,000), creditors are notified by mail only.

The paperwork filed with the court for bankruptcy are public documents. Anyone can search court records for these documents. Filing documents in court notifies the Credit Bureau. The bankruptcy is recorded and remains on your credit record for six years.

Unless you are a prominent person and the media picks up the filing, chances are that only your creditors and the Credit Bureau will know about your bankruptcy.

Last Reviewed: October 2020

No. Your bank is breaking the law if they cancel or refuse to open a bank account for you because you have been, or are, in bankruptcy.

If you believe that a financial institution has breached (broken) this law, contact the Financial Consumer Agency of Canada. You can also make a complaint with the Ombudsman for Banking Services and Investments (OBSI) – an independent organization that investigates consumer complaints against financial services providers, including banks.

Last Reviewed: October 2020

It depends on what kind of property you own.

The following property is not assigned to your trustee:

• property that is exempt from transfer by federal and provincial laws
• property that is security for loans (unencumbered property), such as a house secured by a mortgage

Make sure that you disclose all of your property and its value to your trustee. Once you have filed for bankruptcy, you cannot dispose of (sell or give away) any assets assigned to the trustee

Last Reviewed: October 2020

The laws are slightly different in each province but basic concepts are the same.

If your house has little or no equity (you still owe a lot of money on it), you can usually arrange to keep paying your mortgage and keep your house after filing for bankruptcy. The trustee does not get involved with this.

If your house has substantial equity, your trustee will either:

• seize your house and sell it OR
• make arrangements for you to re-purchase the equity from the trustee

You can calculate your home’s equity as follows: Value of house less mortgage and property taxes owing.

The rules about houses and bankruptcy are complicated. Contact a Licensed Insolvency Trustee for more information and advice.

Last Reviewed: October 2020

You can keep property that is encumbered (security for a loan) if the lender lets you keep it. For example, your house.

You can also keep assets that are exempt by provincial, territorial or federal laws. But you can only keep the equity in the asset, and even that can have limits. Equity is the difference between the value of the asset and any charges or encumbrances against the asset (amounts owing).

Example: You have a car worth $10,000. There is a secured debt against it of $6,000 (if you financed the vehicle, this could be the amount remaining). The equity in the car is $4,000. In Alberta, the exemption for a car is $5,000. You are entitled to the equity of $4,000. Unsecured creditors cannot take the car.

The laws of exemption are different in each province or territory. Common examples include:

• food required by the bankrupt and their dependants during the next 12 months
• necessary clothing of the bankrupt and their dependants (but usually only up to a certain value)
• household furniture and appliances (but only up to a certain value)
• one motor vehicle (but only up to a certain value)
• medical and dental aids required by the bankrupt and their dependants
• some portion of land where the bankrupt is a bona fide farmer and whose principal source of livelihood is farming, as long as the bankrupt’s principal residence is located on that land and the land in question is part of the bankrupt’s farm
• equity in the bankrupt’s principal residence (but only up to a certain value). If the debtor is a co-owner of the residence, the amount of the exemption is reduced to an amount that is proportionate to the debtor’s ownership interest.
• personal property (such as tools, equipment, books) required by the bankrupt to earn income from their occupation (but only up to a certain value)
• where the bankrupt’s primary income is from farming operations, personal property required by the bankrupt for the proper and efficient conduct of the farming operations for the next 12 months

For more information on exemptions in your province or territory, contact a Licensed Insolvency Trustee.

Last Reviewed: October 2020

All the assets you own at the date of bankruptcy (other than your allowed personal exemptions) go to the trustee for the benefit of your creditors. In addition, any assets that you acquire (purchase or are given) during bankruptcy period go to the trustee for the benefit of your creditors.

This includes:

• inheritances to which you might become entitled by the death of someone during your bankruptcy
• any tax refunds outstanding as the date of the bankruptcy
• any pre-bankruptcy tax rebates
• any award for wrongful dismissal
• lottery winnings
• any significant property that you purchase with any surplus income.

Last Reviewed: October 2020

Your spouse or partner will not be directly affected by your bankruptcy if they are not responsible for any of your debt. In other words, they are not affected as long as they did not sign an agreement or contract for any of your debt – as a guarantor or co-signer. (If your spouse or partner has a supplemental credit card, they will likely be responsible for that debt.) If your spouse or partner is responsible for some or all of your debt, or they have their own unmanageable debt, then they may have to file for bankruptcy too.

Last Reviewed: October 2020

Child support, spousal support and partner support payments are not affected by bankruptcy. You must keep making these payments.

Last Reviewed: October 2020

Under the Bankruptcy and Insolvency Act, some debts are not discharged by bankruptcy. These debts include:

• support payments (child, spousal or partner)
• student loans (if you stopped being a student less than seven years ago)
• court-ordered fines or penalties
• debts arising from fraud

Bankruptcy usually does not affect secured debts, such as a mortgage or vehicle financing. A secured loan means the lender requires the borrower to use its property as collateral for the debt. If the borrower defaults on the loan, the lender can seize the property. It can use the property to repay the loan. If you can afford monthly payments while bankrupt, you may be able to make an agreement with the secured creditor. However, declaring bankruptcy is usually an act of default under a mortgage and can trigger the foreclosure process (though the lender can choose not to if you are making payments). Talk to a Licensed Insolvency Trustee for more information and advice.

Last Reviewed: October 2020

The length of your bankruptcy depends on many things. The shortest time is nine months.

You can be automatically discharged after nine months if:

• This is your first bankruptcy, and you cooperate with the trustee.
• Your surplus income is less than $200 per month.
• Your creditors, the Superintendent of Bankruptcy or your trustee do not oppose your discharge. (They may oppose your discharge if you do not fulfil your duties or if you were not honest during the process.)
• You received credit counselling.

Surplus income is income above the limits set by the Office of the Superintendent of Bankruptcy. If your surplus income is more than $200 per month, you must pay your trustee 50% of the surplus amount.

The following can extend the length of your bankruptcy:

• Surplus income payments
• One or more previous bankruptcies
• If you owe more than $200,000 of personal income tax debt representing 75% or more of your total unsecured debt
• Failure to complete one or more duties
• Opposition to your discharge by your creditors, your trustee or the Superintendent of Bankruptcy

Your bankruptcy can last for up to 36 months if it is your second bankruptcy and you have surplus income greater than $200 per month.

Last Reviewed: October 2020

Once you declare bankruptcy, you remain bankrupt until discharged. Depending on the circumstances of your bankruptcy, you can be automatically discharged or you may have to apply for a discharge.

While bankrupt, you must tell creditors you are bankrupt if you apply for more than $1000 in credit. If you are not cooperating with the trustee, they may remove themselves from your file. If a Licensed Insolvency Trustee is not working with you, then you lose certain protections. Creditors can start lawsuits against you or garnish your accounts. As well, the effect on your credit score lasts for years after you discharge. If you do not get discharged as soon as possible, the effect lasts longer.

Last Reviewed: October 2020

Remember, by the time you reach this point, your credit rating may already be severely compromised. Restoring your credit rating takes time, it is not automatic.

The Credit Bureau is notified when you file for bankruptcy. You will be assigned the lowest credit rating score. Bankruptcy has a long-term effect on your credit rating. The bankruptcy remains on your credit score for six years after your discharge. If you file for bankruptcy a second time, it can remain on your credit score for up to 14 years after discharge.

You may or may not be able to get credit during bankruptcy. No one is ever required to give you credit. Your ability to get and use credit after your debts are repaid depends if you are able to convince lenders that you can repay the new debt. While bankrupt, you must tell creditors you are bankrupt if you apply for more than $1000 in credit. Make sure your credit record is updated and that you keep all documents for reference by future lenders.

Last Reviewed: October 2020

First, try to work things out with your trustee. If you cannot resolve the problems, contact the Office of the Superintendent of Bankruptcy (OSB) in your area. The OSB can review and investigate your complaint and try to resolve the issue.

Last Reviewed: October 2020