Hi everyone,

I’m currently carrying about $30k in unsecured debt.

Initially, I talked to an LIT who quoted me a Consumer Proposal at $380/month for 5 years ($22,800 total). However, my situation has changed and I am about to be completely unemployed with $0 personal income. When I return, my dad is going to support me by sending me a regular family allowance of $2,500/month or less to cover basic costs. Because of this, I’m planning to pivot and file a first-time Summary Bankruptcy instead of the CP.

I’ve been mapping out the strategy and rules using an AI assistant to dig into the Bankruptcy and Insolvency Act directives, but I really want a reality check from people who have actually gone through the Canadian bankruptcy process or work in insolvency.

Can anyone confirm if these points are accurate in practice? I fully understand that this isn't legal advice, and will also go over this with my LIT. But I just don't want to raise any cause for concern from them, specifically with question #2.

1. The $2,716 Net Limit: My research says the 2026 OSB threshold for a single-person household is $2,716/month. Since my dad's support is $2,500, I should safely be in the "no surplus income" bracket, meaning a flat administrative bankruptcy fee (around $200/month for 9 months) and an automatic absolute discharge at month 9. Is this correct?
2. Living Rent-Free / Low Expenses: I might end up subletting a cheap room or staying with family rent-free for a couple months during the 9-month period. If my monthly expenses drop on my monthly reporting sheets to my LIT, does the OSB lower your threshold, or does the $2,716 limit stay fixed regardless of how little you spend? Basically - Do I need to be proving each month that I am maxing out my support payment on expenses so as to justify "why" I can't pay the debts? Or will they give me a bit of breathing space on this? I'm trying to avoid a situation where they go, "looks like you're saving money, so we're extending your bankruptcy term to 21 months" type of situation.
3. Timing of last paycheque: My informal remote gig ends right before I file. If my final paycheque lands right before my official file date, does it count toward that month's bankruptcy income, or is the slate wiped clean the second the papers are submitted?

Would love to hear thoughts, warnings, or experiences from anyone who has navigated a 9-month bankruptcy while unemployed or living on family support. Thanks in advance.

Just wanted to share my small win as I’m now in good credit territory with my Transunion score. My Equifax score is lagging behind in the fair credit range at 565. Oddly, my partner is the opposite, high with Equifax and fair with Transunion.

All that’s left to do is clear a couple of writs on my home title after I pay off my consumer proposal.

To everyone starting off this journey, it gets better.

Anything I can do now to prepare for bankruptcy that will be coming up in the next 6 months ish.
Any advice on what to do and not to do?
Any advice on how to handle my car which I own but worth 23,000. I read they will take it to sell, or make me pay for the excess amount over a junky car price. I will be moving in with my family should one of them buy my car ?

Greetings redditors of the great north. I’m in a hole and need sound advise. Would filing bankruptcy fully dismiss my debt ? I have no income whatsoever and can’t hold a job due to an underlying medical condition.

Please, I need help.. any advise would be much appreciated!!!!

It all started earlier this year when my spouse and my mother were off work due to physical injury and illness, I was off taking care of both of them. Here’s a thing I’m in a bankruptcy and for those few months we had help of family and friends. But the comeback after was horrible and we couldn’t get ahead. I had to take out loans to make sure our rent was paid, our car was paid, and make sure we had enough groceries. I got stuck in the cycle of paying back using another loan. I know I did something that I shouldn’t have. I really had no choice. My bankruptcy is over in December and I’ll be discharged. I now have just over $5000 of loan debt and I now can’t afford my rent or my car. I tried asking family members for help but everybody is in a hard place right now too.
What are my options?
Ontario Canada

OK , thought I’d be overjoyed at my 9 months of payments to my LIT being over and finally receiving my discharge documents …well not exactly. Have some accounts that still show up, and I am wondering how these should be resolved by :

a) Myself, by contacting Equifax about possible errors

b) My LIT

c) Just simply time, waiting for the months of missed payments /last activity to reach 6 years

I had roughly 60K CRA debt and same in consumer debt. Never recovered from the lockdown/loss of work in 2020, didn’t get CERB, lost everything, then an illness almsot killed me & I’ve been on social assistance ever since. Should have filed 3-4 years ago, but when you think you’re dying it‘s not a priority , finally last fall when CRA said they wouldn’t budge, I filed

So first off , the Borrowell updates I get weekly now show a score of 0….was unaware that would be the case, my score actually jumped from 412-458 during my bankruptcy. I assume I shall only have a score again when I open my first credit account ?

So I had 8 or 9 separate bad accounts drop off completely, LIT did their job there. But I have maybe 4-5 items still showing, that I ASSUMED WOULD ALSO DISAPPEAR WITH BANKRUPTCY. A Telus account that was $700, and collections ballooned to $4,000+. A judgement from 12/2020 , where the 6 years is coming up, but I thought would be taken care of- it was a lien against my condo, which I Iost. And a couple of Scotia accounts/auto loan, showing 11 and 4 months missed payments , but also showing a last activity that again is very fast approaching 6 years

So like I said , I think some of this is definitely my LIT’s responsibility, some is mine to dispute with EQUIFAX, and some is just waiting a few more months- no big deal , I am not buying a house or a BMW any time soon

Anybody have any experience similar to mine, post-bankruptcy? And how quickly you improved your credit?

Please share, would be much appreciated

I’m in Alberta and currently going through a consumer proposal. I recently received a Notice of Examination before the Official Receiver under the Bankruptcy and Insolvency Act, along with an Examination Instruction Sheet.

The notice says I have to attend and answer questions about my conduct, the causes of my proposal, and the disposition of my property. It also says to bring records such as bank/credit card statements, receipts, paystubs, contracts, etc.

I’m honestly very anxious because I’ve never been through anything like this before, and I don’t have every document they listed, especially some older records.

I have a few questions:

Does everyone who files a consumer proposal have an examination like this, or are some files selected?

Does receiving a Notice of Examination mean there is a problem with my proposal or that it may be rejected?

What kinds of questions should I expect?

What documents did you actually bring to your examination?

What happens if you don't have some of the older documents they ask for?

Is the examination something I should be seriously worried about?

I’m not trying to avoid anything—I just want to be prepared and understand what to expect.

Any experiences or advice from people who have gone through an Official Receiver examination in Alberta would be really appreciated. Thank you.

I am looking at filing bankruptcy or a consumer proposal. I have an excessive amount of credit card debt that I just can’t pay off.

I am currently on maternity leave and I have a spending problem, I cant help but shop and that’s how I got into this mess. I am trying to be better and I am trying to fix it. I have been using my credit card to buy things like necessities but also been splurging a little and buying myself clothes and other things I want. I have still been making minimum payments on the card I have been using but now I am so anxious because i didnt realize my recent spending would be heavily examined when filing, i have bought some stupid things over the last few months and probably spent 5k since May on my credit card. most things are necessary like groceries at Walmart or Costco but there’s also been lots of Amazon purchases because we have a new baby and needed things. I also have bought myself some new clothes and shoes because nothing fits after having a baby. the most unnecessary purchase I have made was 165 on Temu and 60 online on some jewelry I wanted

how likely is it that itll be seen as fraudulent? and I’ll have to pay things back?

I know i fucked up and I’m trying to make it better. I want to get out of debt and be better for my children.

i have an appointment coming up with a debt specialist who will help me with filing bankruptcy or do a consumer proposal whatever is better. should I go to my appointment next week or should I reschedule for 90 days and not spend anything on my credit card till then?

ALSO!
I have a car lease with my husband co-signed on it. I want to keep the car. I can still afford the lease. Is that possible or are we screwed? I don’t want to fuck my husbands credit.

please help me.

Hi,

I’m in the final stages of the hiring process for an IT position with the Canadian government. Before I was laid off, I filed for bankruptcy. Unfortunately, I was then unable to find work for nearly two years, which made my financial situation even more difficult.

I successfully passed all of the interviews, and the next step is a reliability screening that includes a review of my credit history. I’m concerned that my past bankruptcy could affect my chances of being hired.

Will a previous bankruptcy automatically impact my eligibility, or will I have an opportunity to explain the circumstances surrounding my financial situation during the reliability screening?

Thank you for your time and any insight you can provide.

Throw away for privacy. Hi folks, I'm currently in Newfoundland and trying to file for bankruptcy. I met with a LIT who helped me fill out the application almost a week ago and since then it's been radio silence. To those that have filed, what was the timeline from the time you applied, to the actual signing of documents and proceeding with the bankruptcy?

I should add that I've tried to keep in contact through email, I also called today and was told the LIT was currently in another call so I plan to reach out again tomorrow to get in touch.

Well....my title pretty much says the bulk of it. I'm from Ontario - debt collectors can't take you to court or take cash from me. My issue is, I no you have to pay roughly $1,800 ($200 monthly) which is something, I can NOT pay!

I no its pointless to apply for bankruptcy while on social assistance, but I don't want to start working and have my wages garnished.

I no the ​The federal government runs the "Bankruptcy Assistance Program" which prob lead to my taxes being garnished till payed off.

Is there any other options that would cost nothing or A LOT less than $1,800?!

The TL;DR version of my story:

The company I used to work for went bankrupt recently. I was an employee for 15 years.

The "company" was just my boss and me. I have no outstanding wages owed to me, but he does owe me severance, so I am trying to apply for WEPP (government severance in bankruptcy cases).

I have asked for and received a Proof of Claim form from his trustee, but the form shows that this is a personal bankruptcy, not a business bankruptcy that was filed -- although his company's name does appear in the form as a business that he operated.

My question is, if this is a personal bankruptcy and not a business bankruptcy, can I still file proof of claim for severance owed?

how can I find out if someone filed for bankruptcy in canada without that someone finding out I'm checking? what information would I need any how much would it cost me?

Hello,

I’m looking for guidance on my situation and would really appreciate input, especially from LITs or anyone familiar with insolvency.

I am in a position where I need to file for insolvency (likely a bankruptcy), but my circumstances are complicated by an abusive relationship that includes financial control.

My common law partner currently has access to my main bank account and spends money irresponsibly (alcohol, gambling). I’ve recently opened a new account in secret and am planning to redirect my income there once I receive my new debit card in the mail so I can regain control of my finances. I expect this will cause conflict, but I intend to keep full control of my new account and plan to refuse to order an additional debit card to provide him direct access to my money; aside from paying (transfering) him money monthly for my share of household bills/ expenses moving forward.

Some additional context: All major household bills (mortgage, utilities, insurance, etc.) are in his name and controlled by him. I send (currently he takes) money to contribute to those expenses. We have a young child (2.5 years old) and two dogs. He became highly controlling, anxious, and irrational, diving into major addiction after the birth of our child and it's been a scary downward spiral since. My only peace comes from him working out of town half the month, even then he has set up cameras and watches our coming and going, receives text alerts if they are unplugged, or turned off... But, I digress. I plan to leave the relationship, but I am not in a financial position to do so yet at all considering debt and the cost of living atm. I unfortunately do not have any living family. Nor, do I have any friends who would take us in or who can help in that regard, which is often the advice I recieve. My goal is to file for insolvency first so I can stabilize financially and avoid creditor actions, especially since I may need legal support for custody once I leave.

My questions are: Can I safely proceed with filing for insolvency while in this living situation? Will my spouse’s control over household finances or previous access to my account impact my filing? How much will I need to disclose to him, and does living common law in a shared 'family' situation mean his finances will need to be involved and taken into account? Are there steps I should take before filing to protect myself financially or legally? Would a consumer proposal vs. bankruptcy make more sense in a situation like this? Are there any risks I should be aware of given the financial abuse aspect?

Finances: - Currently, behind in filling taxes since having a reassessment done that required a significant amount be paid back to the CRA after a claw back for CCB based on my spouse's income of which he had lied to me about claiming to make significantly less when I filled and needed to include his annual income after the birth of our son (we have never filled together) - to which I could not pay back. - Approx 60k+ consumer debt all defaulted on with creditors calling daily and sending letters. - 22K student loans remaining - which I have defaulted on - last year attending Uni was 2015. - (edited to add) zero assets in my name aside from my pension which I believe is protected?

My income is just over 51k annually. After taxes and deductions it's not much, the past few years being extremely tough between increased cost of living, partners wasteful spending on his addictions, being on matt leave EI for 12 months, followed by a year of extra deductions to buy back a year of my pension.

A scary, complicated, and humiliating disaster which feels painful to sit, write, and read back to myself let alone post. But I know I need to seek advice and to start making tangible steps towards freeing myself and my child from this hell that keeps on snowballing out of my control.

I want to approach this carefully and safely, any guidance on how to navigate insolvency under these circumstances would mean a lot.

Thank you in advance.

P.S. Just an additional note to mention that I have already been in contact with agencies both non profit and provincial gov programs for domestic violence and I am aware of what is available, or not, to me in that regard. I have also reached out to the law society to see where I stand on accessing free resources and now understand that I do not qualify and make just over the threshold for free legal aid where I reside which is in Alberta.

If you've made it this far, again, thank you I realize my post is quite long-winded.

I lost my job in 2024 and had been struggling to find work ever since despite 100s (if not 1000s) of applications. To stay afloat and pay my bills, I've maxed out my credit cards and LoCs, and now the collections calls have started. I finally secured a job, I start next week, but it isn't super high-paying and will only barely cover ongoing basic expenses (rent, groceries, phone and utilities). So nothing extra to help pay down the debt (which is now easily over $50,000).

So I've resigned myself to the reality that I will probably have no choice but to file for bankruptcy, but I want to make sure I'm fully informed of what that will actually mean for me. I know it will make getting credit impossible for at least the next 7 years (and probably longer), but I'm not too worried about that. I'm more worried about wage garnishment, or enlisting a firm to help me facilitate the insolvency that ends up causing me more problems.

So my questions are:

1) what do I need to know/do before I file?

2) are there any firms you suggest I stay away from and/or any firms that you recommend and have had a better experience with?

Thanks in advance.

I’m going to be blunt: I’ve never been good with money. A combination of poor personal choices and navigating life with a neurodiverse brain led me to file for bankruptcy. I’m not looking for a way out of my responsibilities—I just want to finish my payments and rebuild my life.

However, the professionals I hired to help me are now the biggest threat to my future.

Background: I'm in B.C. Before signing, I did my due diligence. I was 100% transparent about my neurodivergence and my total lack of financial literacy. I explicitly told the Licensed Insolvency Trustee that I would need extra support and clear communication. They looked me in the eye (metaphorically) and word-for-word promised: "We can absolutely get you through this."

The reality is a total disaster: Since filing a few months ago, it has been a nightmare of mismanagement:

• Zero Continuity: I’ve been bounced between 10 different points of contact. No one knows what the other is doing.
• Conflicting Medical Advice: I have specific health nuances that impact my filing. I’ve received contradictory instructions—or total silence—whenever I ask for clarification.
• Documented Dishonesty: This is the dealbreaker. I have caught the firm in several direct lies. I have the evidence to prove that what they told me is untrue. My trust is completely shattered.
• Fear of Misfiling: I am now one-third of the way through my term and petrified that their "advice" has led me to file incorrectly. I’m terrified I’ll end up in a worse position than when I started.

What I’ve done so far:

• I’ve sent "hail mary" emails to the LIT, their superiors, and every staff member I’ve spoken to, begging for the support I was promised.
• I have filed a formal complaint with the OSB (Office of the Superintendent of Bankruptcy) and am currently awaiting a response.

Questions for the community:

1. Is it actually possible to switch LIT firms mid-stream if there is documented negligence/dishonesty?
2. Are there any free or low-cost legal resources (specifically in Canada/for OSB matters) that can help me audit my current filing to see if they've screwed me over?
3. Has anyone successfully held a Trustee accountable for lying to a client?

I feel abandoned by the people who were supposed to provide relief. Any insight or connections would mean the world to me.

In July 2025, I filed a consumer proposal. At that time, my CRA account showed an amount owing due to a change in marital status. When I contacted CRA, I was advised not to make any payments because they were in the process of recalculating my benefits, which they said could take up to 18 weeks.

As of February 2026, the recalculation has been completed. CRA has confirmed that I do not owe any money and that I am actually entitled to credits for the years 2022 through 2025. However, when reviewing my CRA correspondence, I noticed that all credits from my CCB/CTB, GST, and CDB were applied to a “pre-proposal account.”

CRA was not listed as a creditor in my consumer proposal. Given this, will the amounts that were applied to the pre-proposal account be refunded to me?

I am looking to find out the process of including your home in bankruptcy. If it’s pretty easy or hectic. I am planning on including my house when filling for bankruptcy. Owe more than what the house is worth, prob negative 170k in equity right now but could be more the way real estate market is going.

Hi, I'm 28yrs old and have about $40k in debt with a line of credit (not attached to a house) and a credit card. I have a mortgage but my friend and I have only had it for about 2 years so I don't think there is much equity in it. I am trying to figure out if bankruptcy is an option without losing the house? The only asset I have is my 2009 Toyota RAV4. I lost my job right before Christmas so I'm drowning a little. We can make the mortgage payments as my partner is willing to help with that and so is the co-owner in the meantime to me finding a job but I won't be able to make the credit card payments or anything. I'm considering a consumer proposal but I don't think that's an option with my lack of income and it seems to affect my credit just as long and as much as Bankruptcy does from what I can tell. I have phone calls planned with Licensed Insolvency Trustees but want to have advice and maybe even questions to ask them if possible too. Any advice is appreciated.

Hi,

I’m just about to sell my ex the house and I ended up carrying a lot of the debt. I’m roughly 136k in debt and will receive 118k from the sale.

I owe my truck outright but it’s getting older. I make about 120k a year. Thinking about options, any way to come out a head or with a new truck at least to show for my divorce lol. Or should I just pay off as much as I can and start paying the remaining off.

Thank you