An LIT can meet with you and talk about your options. You can find an LIT by visiting this website: https://www.ic.gc.ca/app/osb/tds/search.html?lang=eng. Enter your city to find the nearest.


You can also find a list of all LITs and licensed insolvency firms here: https://www.ic.gc.ca/app/osb/tds/list.html?lang=eng. Click on a link to find contact information.
If you can’t find an LIT, you will need to contact the OSB.;
, You have many options other than bankruptcy, and the LIT will help you analyze all of them. In particular, you should discuss what personal possessions you will lose in the bankruptcy and which debts bankruptcy can eliminate. Your options other than bankruptcy include the following:Reworking your budget. If you can lower your expenses, you can contribute extra money to your debts and eventually pay them off.Selling assets. You can sell any unnecessary assets and use the proceeds to pay down debt.
Consolidating debts. You can take out a personal loan to cover all of your current debts. If the personal loan has a lower interest rate, then you can lower your monthly debt payments.
Making a consumer proposal. You offer to pay your creditors a percentage of your debt or to pay off the debt over a longer period. Your creditors must vote to accept or reject the proposal. If approved, you make payments according to the payment plan and unpaid debts are eventually forgiven. A consumer proposal is available to individuals who owe less than $250,000 (excluding mortgages).
Making a division I proposal. This is like a consumer proposal but for those whose debt exceeds $250,000.
 You might not be able to find an LIT, or no LIT will take your case. In this situation, you should contact the OSB’s Bankruptcy Assistance Program. They may be able to help. However, you must meet certain requirements:You can’t be in jail.
You must have contacted at least two LITs and tried to hire them.
You can’t have been involved in commercial activities recently.
You can’t make so much money that you will need to make surplus income payments under a bankruptcy.
 You must complete a bankruptcy application and other paperwork with your LIT. The LIT will file the bankruptcy application with the OSB.After filing your application, the LIT will also notify your creditors that you have filed for bankruptcy.
All garnishment and other collection actions will stop once you file your bankruptcy application. If these actions don’t stop, speak to your LIT.
 After you file, your LIT will work directly with your creditors. You should stop making payments to unsecured creditors, such as credit card companies.However, you will still need to continue making payments to secured creditors unless you give up the asset.
 After creditors are notified of the bankruptcy, they can call a meeting. If one is called, you must attend as the bankrupt.Your creditors can ask you questions during the meeting.


Generally, most people who file a personal bankruptcy do not have to answer questions in a meeting of creditors., Depending on your circumstances, you might have to answer questions under oath from the OSB. The questions will cover a variety of topics, but the purpose will be to root out fraud. You might be asked the following:Your conduct. For example, the OSB might believe you incurred a debt because of fraud.
What caused your bankruptcy. You should be prepared to speak honestly about what brought upon the bankruptcy.
How you disposed of your property. If you gave away assets right before filing for bankruptcy, the OSB will want to know why. You might have transferred assets to family to shield them from the bankruptcy.
 The LIT can sell some of your property and use the proceeds to pay off your creditors. However, federal and provincial law will shield some assets from being sold.You should have talked with your LIT before filing about what you will be able to keep. Generally, you can exempt the following within a certain dollar limit:personal items, such as clothing
household goods, including furniture and food
car (in some situations)
home (only in some provinces)
tools of the trade
retirement savings and pension

, Debtors with sufficient income must pay off a portion of their debts. These payments are called “surplus income payments.” Whether you must make surplus payments will depend on how much you make and the size of your family. The larger your family, the more money you can keep.


The OSB has created standards for deciding whether you need to make surplus payments and how much. For example, one person is allowed $2,089 a month in income.If you make more, then the LIT will help calculate how much you must pay.
The length of time you must make surplus income payments depends on whether this is your first or a subsequent bankruptcy.
If your income changes, you must notify your LIT.
 To successfully complete your bankruptcy, you must fulfill certain obligations. Your LIT will discuss these with you. Generally, you must do the following:


Attend two financial counseling sessions. These sessions will focus on why you went bankrupt and help you manage your finances in the future so you can avoid bankruptcy.Provide your LIT with monthly income statements and expense statements. If this is your first bankruptcy, then your LIT will average your income after seven months to determine whether you must make surplus income payments.Pay the LIT to represent you and handle your bankruptcy.
Give your LIT tax information., You should receive your discharge within nine months if this is your first bankruptcy and you don’t need to make surplus income payments.At the completion of the bankruptcy, your unsecured debts will be wiped out.This will afford you a fresh start by relieving you of some of your debt load.


You might receive an order of conditional discharge. For example, you might have to make additional payments to be distributed to your creditors before the discharge takes effect., Once you have completed the bankruptcy, most debts will be discharged if you incurred them before filing for bankruptcy. However, some debts are not discharged, such as the following:some student loans
child support payments
alimony payments
court-ordered penalties and fines
debts obtained through fraud
secured debts
Find a Licensed Insolvency Trustee (LIT).
Discuss your options with the LIT.
Contact the OSB instead.
Submit bankruptcy paperwork.
Stop making payments to unsecured creditors.
Attend a meeting of creditors.
Answer questions from the OSB.
Hand over some personal property.
Make surplus income payments.
Fulfill your other duties.
Receive your discharge.
Identify debts that aren’t wiped out.
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