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Filing for bankruptcy is a solution that is available if you lack the resources to pay your debt obligations or to file a proposal. The prime principle behind personal bankruptcy in Vancouver or any part of Canada is to help a person burdened with debt make a fresh start financially. In personal bankruptcy, the bankrupt surrenders his non-exempt assets to a Licensed Insolvency Trustee in exchange for getting relieved from his debts that are discharged in a bankruptcy. This process will provide you with immediate protection from your creditors, in that collection calls, most garnishments, and legal actions will stop. Licensed Insolvency Trustees at Campbell Saunders Ltd. are there to help you with the process.

Who Qualifies to File Bankruptcy

Who Qualifies to File Bankruptcy?

Not everyone who has debt qualifies to file for bankruptcy. There are several basic eligibility requirements before you can file for bankruptcy. To qualify for a personal bankruptcy filing, you must:


  Owe at least $1,000; and

  Be “insolvent,” which means:

  • You are unable to pay your debts as they come due; and
  • The value of your debt is more than the fair market value of the assets in possession of the debtor.

Please keep in mind that if you are insolvent, owe more than $1,000, and qualify for bankruptcy, it does not mean you must file for bankruptcy. You should always explore all debt solutions with a Licensed Insolvency Trustee (“LIT”), including alternatives to personal bankruptcy. One of these alternatives could be a consumer proposal, which one of our trustees can assist you with. Other options include debt consolidation and credit counselling; we can provide a referral to a trusted organization that can help you with these types of solutions. Your LIT will ensure you are well-informed, which means you can weigh the pros and cons of each option and make a smart decision on what is right for your financial situation.

How Do I Go Bankrupt

The Advantages of Filing for Personal Bankruptcy

For those under personal debt, personal bankruptcy can help repair and rebuild finances. Filing for bankruptcy can have many benefits, such as:


Once you file for bankruptcy, a stay of proceedings will prevent creditors from taking any actions against you. All legal actions taken by creditors are put on hold, you will not receive calls from collectors, and or wage garnishments will stop (apart from garnishments for child and spousal support, which are not stopped by personal bankruptcy).


As your LITs, we can help protect some of your assets from seizure. This can include your primary home of residence.


If you'd like to learn more about personal bankruptcy in Vancouver, and other financial options available to you, we invite you to visit our blog.

What is the Procedure for Declaring Personal Bankruptcy? 

If someone wants to declare himself/herself bankrupt, then there are specific steps that one needs to follow:


Step 1: Meet with a Licensed Insolvency Trustee for an initial consultation.


Step 2: You will need to provide copies of all relevant financial information so the LIT has the complete picture of your financial situation and can explore available options.


Step 3: Once you decide to proceed with declaring bankruptcy, the necessary paperwork is completed, and the Licensed Insolvency Trustee files the paperwork with the Office of the Superintendent of Bankruptcy.

How Long Will the Process Take?

Depending on the nature and extent of your debts and the amount of your surplus income:

  • For a first time bankrupt: 9 months (without surplus income); 21 months (with surplus income)

  • For a second time bankrupt: 24 (without surplus income); 36 months (with surplus income)

Bankruptcy FAQ


Other Factors to Consider When Filing for Personal Bankruptcy

The lack of general information about the personal bankruptcy process can make it a difficult, stressful and uncomfortable experience. Here at Campbell Saunders Ltd., we make the process easier for you to understand and go through, making a personal bankruptcy a viable option to improve your finances. There are Filing for bankruptcy is a relatively straightforward process, which involves:


Forms: We will work with you to take care of all the necessary documentation. As your LIT, our office will file the required forms with the Office of the Superintendent of Bankruptcy (OSB). The acceptance of your papers by the OSB will initiate your bankruptcy.


Assets: As the bankruptcy progresses, your non-exempt assets will be designated to the Trustee for realization for the benefit of your creditors.


  Surplus income payments: Based on your income level, you might be required to make some funds available to us so that we can forward them to your creditors. Your LIT will help you determine the limit for your family and calculate the amount if you are required to make surplus income payments during the bankruptcy process. The surplus income depends entirely on whether your household income is higher than the OSB standard and your family's size.

Which Are the Laws Governing Bankruptcy in Canada?

When it comes to bankruptcy/restructuring  in Canada, two primary laws govern personal bankruptcy in Vancouver and the rest of Canada, namely, the Bankruptcy and Insolvency Act (the "BIA") and the Companies' Creditors Arrangement Act (the "CCAA").


Bankruptcy and Insolvency Act (BIA) is the principal federal legislation in Canada applicable to insolvencies.


If ever you’re looking for legal guidance on the subject of personal bankruptcy in Vancouver, feel free to get in touch with Campbell Saunders Ltd., and we will make sure that all your bankruptcy queries are answered.

Why Work with a Licensed Insolvency Trustee?

During the past 30 years, our expert team of Licensed Insolvency Trustees at Campbell Saunders Ltd. provided numerous clients with personalized financial help in Vancouver. There are many reasons to choose our services, including:


We have the required experience, training, licenses and know-how.


We help you explore tailored financial solutions and deal with creditors on your behalf.


We help protect your assets and have your present and future financial well-being in mind.

Licensed Insolvency Trustees are regulated by the government.


We have listed down some useful resources that can come in handy. Have a look!

Got Questions About Personal Bankruptcy?

Campbell Saunders Ltd. can assist you with your personal bankruptcy in Vancouver.

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