Bankruptcy Canada – FAQ Who can file bankruptcy or make a proposal?
• you are not presently in bankruptcy and; • you owe at least $1,000 and; • you are not able to meet your regular payments as they become due; or • you would not be able to pay all of your debts if all of the assets you are not allowed to keep are sold. Your company, partnership, or business may also file bankruptcy or make a proposal if it meets the above requirements. You should be aware that any unsecured creditor to whom you owe more than $1,000 could try to force you into bankruptcy. This is called a petition in bankruptcy. In this case, the creditor must prove that you have committed an act of bankruptcy, such as not paying your bills as they came due. The court reviews the facts and, if the petition is allowed, issues a receiving order which places you in bankruptcy with a trustee selected by the petitioning creditor. Will bankruptcy get rid of all debts? Most debts, but not: • secured debts (eg. mortgage or car loan); • child support, maintenance, alimony • Court fines, penalti
