Program · Federal
Bankruptcy
Formal surrender of non-exempt assets in exchange for discharge of most unsecured debts. First-time bankruptcies typically discharge in 9–21 months.
Eligibility
- Insolvent
- Minimum $1,000 in debts
- Willing to surrender non-exempt assets (exemptions vary by province)
Limits and rules
- First bankruptcy: discharge in 9 months (no surplus income) or 21 months (with surplus income)
- Second bankruptcy: 24 or 36 months
- Stays on credit report 6–7 years after discharge (R9 rating)
- Cannot discharge: CRA debt from willful evasion, student loans less than 7 years since end of study, child and spousal support, court-ordered fines, debts obtained by fraud