When you go bankrupt you don’t literally lose everything. Most provinces allow you to keep your clothing and basic household furniture as long as their value doesn’t exceed certain provincial limits. You are also allowed to keep necessary medical and health related equipment. Some provinces have provisions that allow you to keep a modest priced vehicle and your home as long you don’t have a lot of equity in them. Equity is the market value of an asset minus what you owe against it. You may also be able to keep the tools of your trade that you need to earn a living, as long as they do not exceed a certain amount.
If you’ve got debt problems you may think you need to go bankrupt. This might not be true.
Steps for Bankruptcy
There are 10 main steps in the bankruptcy process. Here’s an overview of what you’ll go through.
What is Insolvency?
Insolvency in Canada is a legal last resort when you can no longer repay what you owe.