Bankruptcy BC

Bankruptcy BC
BankruptcyCanada.com

Table of Contents
• Page 3: Bankruptcy BC Information
• Page 6: What is Personal Bankruptcy in BC?
• Page 7: Can I File For Bankruptcy in BC?
• Page 8: What Happens When I File
Personal Bankruptcy in BC?
• Page 10: What is Surplus Income?
• Page 11: What Are The Steps to
Filing Personal Bankruptcy in BC?
• Page 18: What Can I Keep?
• Page 20: What is The Cost of Bankruptcy in
BC?
• Page 21: When Are My Debts Extinguished?
• Page 23: What Debts Survive?
• Page 24: How Does Filing Bankruptcy Affect
My Credit Rating?
• Page 25: Who Will Know I Filed Bankruptcy?
• Page 26: Bankruptcy British Columbia
• Page 27: Why You Should Use a
British Columbia Bankruptcy Trustee
• Page 31: Providing BC Bankruptcy Information

Bankruptcy BC Information
• Bankruptcy Law is designed to allow a person who has debts they
cannot repay a chance for a new financial life by eliminating their
debts.
• Our website has full bankruptcy BC information so people who are
considering filing bankruptcy can make an informed decision about
bankruptcy before visiting with a trustee. When you meet with
one of our bankruptcy BC Licensed Insolvency trustees you will
have a good idea of how the bankruptcy laws can help you if you
read the information on our site.
• For first time debtors’ bankruptcy can wipe out all of our eligible
debts within 9 months, or within 21 months if the debtor has
excess income (over $100 a month.)

• Most debtors who file bankruptcy have no assets that
they will lose when filing bankruptcy, and a BC
bankruptcy allows a person to receive a fast fresh start
to their financial life.
• Under bankruptcy BC law, debtors filing bankruptcy are
allowed to keep certain assets, known as
bankruptcy exemptions.
• If you have property that is not covered by the
bankruptcy BC bankruptcy exemptions, or you wish to
repay your debts over a longer period of time you can
file a Consumer Proposal.

• A consumer proposal will last for a period of three to
five years. The Bankruptcy BC laws cover proposals and
do not allow a proposal to last longer than 5 years.
• When you want to talk with one of our bankruptcy BC
Licensed Insolvency Trustees in bankruptcy about filing
bankruptcy, you can call one of our listed trustees in
bankruptcy in BC to set up a free consultation meeting.
• After you are discharged from bankruptcy you can
rebuild your credit score and get a credit card.

What is Personal Bankruptcy BC?
• Filing bankruptcy in BC is a legal process that allows you to receive
a discharge of your unsecured debts in exchange for assigning any
non-exempt assets you own to a licensed insolvency trustee. In BC,
most debtors that file personal bankruptcy have all of their assets
protected by the BC bankruptcy exemptions. This means that most
bankrupts in BC can keep all of their assets when going bankrupt.
• BC bankruptcy is a federal law governed by the Bankruptcy &
Insolvency Act, and certain BC bankruptcy rules. The BC
bankruptcy laws were written to give an unfortunate but honest
debtor to receive a discharge of their debts. Your Trustee will also
ensure that your creditors are treated in an equal and fair manner.
• The BC bankruptcy process gives you a fresh start financially.

Can I File For Bankruptcy in BC?
• You are eligible to file for bankruptcy in BC (and the
rest of Canada) if you have lived or done business in
Canada in the past year, and if you are insolvent.
• Insolvent means that you owe $1,000 and are
unable to pay your debts as they are due and have
more debts than the value of your assets.

What Happens When I File
Personal Bankruptcy in British Columbia?
• Immediately upon filing bankruptcy all collection
actions, either in place or being planned, will be
stopped. All wage garnishments, collection calls, and
lawsuits against you will stop. This happens through the
Personal Bankruptcy BC law known as the “Stay of
Proceedings.” It is important to note that bankruptcy
only deals with unsecured debts, so you can still receive
a collection call or be sued by a secured creditor. Often
people struggling with debt find that the relief from
unsecured debts makes paying their secured debt
obligations much easier.

What Happens When I File
Personal Bankruptcy in British Columbia?
• Once you have filed bankruptcy you will stop paying
your unsecured debts, and you will make a payment
each month to your Trustee. The minimum payment
for bankruptcy in British Columbia is $200 a month,
although if you have surplus income your
bankruptcy payment will be higher each month. You
are required to submit to your Trustee proof of your
net income each month, so the Trustee can
calculate if you have surplus income requirements.

What is Surplus Income?
• Surplus income is required if your household
income is over an income threshold set by the
government based on the size of the family unit. If
you have surplus income, you must pay a portion of
this surplus – 50% – to your Trustee, who will
distribute your surplus income to your unsecured
creditors.

What are the Steps to
• Step 1: Schedule a Free BC Bankruptcy
Consultation With a Licensed Insolvency Trustee
• You can call a local trustee in your area to have your
financial situation assessed by a government licensed
trustee. The trustee will meet with you to discuss your
financial situation and then the trustee will explain all of
your possible options, including personal bankruptcy.
Your trustee might also suggest a consumer proposal or
will be able to help you avoid bankruptcy and a proposal
altogether.
•

• Step 1: Schedule a Free BC Bankruptcy
Consultation With a Licensed Insolvency Trustee
• If you and the trustee decide that BC bankruptcy is the
right choice for your money problems, the trustee will
cover everything that personal bankruptcy involves. The
trustee will cover the required payment you will have to
make each month, how long your bankruptcy will be,
the duties you will be required to complete, and the
impact of bankruptcy on your spouse, family and credit
rating. The trustee will answer all of your questions
about BC bankruptcy, and will ensure that you are
comfortable with starting the process.

• Step 2: Fill out and Sign the
Necessary Bankruptcy Forms
• The trustee you meet with will provide you an
application form to fill out. Once you have
completed this form you will return it to the Trustee.
Most Trustees will have an application form you can
fill out online and email to the Trustee.

• Step 2: Fill out and Sign the
Necessary Bankruptcy Forms
• Once the Trustee has your signed application form, they will
prepare all the necessary legal bankruptcy forms that are
required to file personal bankruptcy in BC. These forms can
be processed very quickly if you need immediate relief from
your creditors. The Trustee will cover all the documents with
you to ensure that you have a full understanding of the legal
process and your duties in a personal BC bankruptcy. We will
ensure you are aware of your duties and what is expected of
you as a bankrupt. Once you are comfortable you will sign all
the forms and the Trustee will submit them to the OSB
(Office of the Superintendent of Bankruptcy.)

• Step 3: Report Your Income and Expenses, Pay the
Required Fees and Complete Any Other Duties
• One of your main duties as a bankrupt is to submit to
your Trustee a monthly statement of your income and
expenses each month. Your Trustee will use this to
determine if you have any surplus income requirements.
You will also be required to submit your payment to the
Trustee each month ($200 monthly in a simple first time
bankruptcy) and complete any other duties that the
Trustee requests of you.

• Step 4: Attend the 2 Required
Financial Counselling Sessions
• As a bankrupt another of your required duties in order
to receive your discharge is to complete two financial
counselling sessions with your Trustee. You can
complete these counselling sessions with another group
of bankrupts, or you can have it 1 on 1 with your
Trustee. The meetings will usually last one hour, and are
intended to teach you good financial management skills.
The first meeting must be held within 30 days of your
bankruptcy filing, and the second meeting usually
occurs at the 7th month of your bankruptcy.

• Step 5: Receive Your Bankruptcy BC Discharge
• Once you have completed your personal bankruptcy, along with all
of the necessary duties, you will receive your discharge from
bankruptcy. Your debts will be discharged and you will have a fresh
financial start.
• Your discharge might be objected by your creditors, the Trustee or
the Office of the Superintendent of Bankruptcy, although this is
very rare, and is almost always because you didn’t complete your
duties, which your Trustee will help you complete so your
discharge is not objected.
• Once you have received your discharge you will be issued a
certificate of discharge from your Trustee. You now have your
fresh financial start and can begin rebuilding your credit.

Bankruptcy BC: What Can I Keep?
• When you file bankruptcy in BC you are permitted
to retain your assets that are listed in the
bankruptcy exemptions. The BC bankruptcy rules lay
out which assets are exempt for BC bankruptcy.
The personal bankruptcy exemptions in BC include:

Bankruptcy BC: What Can I Keep?
• Your car with equity of $5,000 or less (If your car is worth $25,000 but
you have a $20,000 loan on it, you have equity of $5,000 and can keep
the vehicle. The vehicle exemption in BC drops to $2,000 if the bankrupt
is behind on child care payments;
• Your home if the equity is $9,000 (or $12,000 of equity in the Greater
Vancouver Regional District or the Capital Regional District);
• $10,000 in “Tools of the Trade”;
• Household goods to a value of $4,000 (Resale value);
• Necessary clothing for the debtor and the family;
• Required medical aids for the debtor and family;
• RRSPs (Any amounts invested in the prior 12 months must be
surrendered to the Trustee for benefit of your creditors.)

What is The Cost of Bankruptcy in BC?
• The cost of filing bankruptcy in British Columbia is a
minimum of $1,800, which includes the Trustee
fees. Most Trustees will accept $200 a month for 9
months, which is the minimum length of
bankruptcy. The cost of filing bankruptcy in BC can
increase substantially however if you are required to
pay surplus income payments. In certain cases, you
might find a consumer proposal more cost effective
than filing for bankruptcy.

When Are My Debts Extinguished?
• Your unsecured debts (with certain minor exceptions)
will be legally eliminated when you receive your
bankruptcy discharge. For most bankruptcies the
discharge occurs automatically after 9 months. This is
for a first time bankruptcy in BC, where the debtor has
no surplus income requirements. The bankruptcy
discharge will be delayed if the debtor has a prior
bankruptcy or must make surplus income payments.
• Your discharge from bankruptcy can also be delayed if
you don’t complete your bankruptcy duties.

When Are My Debts Extinguished?
• A first time bankrupt with no surplus income, who completes all his
duties, will receive their discharge automatically in 9 months;
• A first time bankrupt with surplus income, who completes all his duties,
will receive their discharge from bankruptcy automatically in 21 months;
• A second time bankrupt with no surplus income, who completes all his
duties, will receive their discharge automatically in 24 months;
• A second time bankrupt with surplus income, who completes all his
duties, will receive their discharge from bankruptcy automatically in 36
months;
• A third time bankrupt will have to go to court to receive their bankruptcy
discharge.

What Debts Survive Filing Bankruptcy in BC?
• All of a bankrupt’s debts will be legally discharged once they receive their
absolute discharge from bankruptcy with the following exceptions:
• Secured debts (bankruptcy only deals with unsecured debts);
• Child support payments;
• Alimony;
• Debts obtained through fraud;
• Debts not included in the bankruptcy (ie, debts you incur during your
bankruptcy);
• Court ordered fines or penalties;
• Student loans, if you have not been out of school for at least 7
years.Section 178 of the Bankruptcy and Insolvency Act lists the debts
that are not dischargeable in a personal BC bankruptcy.

How Does Filing Bankruptcy
Affect my Credit Rating?
• When you go bankrupt you will receive an R9 credit rating on your credit report,
which is the lowest score. However, if you are insolvent and considering
bankruptcy, your credit score is probably already as low as it can get. Even though
your bankruptcy will appear on your credit report for at least 6 years (or 14 years
for a second bankruptcy), filing bankruptcy gives you a fresh start, which is often
exactly what bankrupts need to begin rebuilding your credit.
• A record of your bankruptcy being on your credit report will not mean you are
refused credit.
• After you have received your bankruptcy discharge, you can immediately begin
rebuilding your credit score. In fact, a bankrupt can receive a mortgage – which is
often the most difficult credit to be approved for – within as little as 2 years after
their bankruptcy discharge if they work diligently at rebuilding their credit.
• Before going bankrupt many BC debtors have a very poor credit score, and
actually filing bankruptcy is their first step to rebuilding a good credit score.

Who Will Know I Filed Personal Bankruptcy in BC?
• While your bankruptcy filing is a matter of public record,
your friends and family will likely never know you went
bankrupt unless you decide to tell them. Your employer
will also never know of your bankruptcy, unless your
wages were garnished (in which case your employer will
be notified to stop the wage garnishment.)
• Your bankruptcy will appear on your credit report and
your creditors will be notified, but your Trustee does not
notify anyone else, and no notice is made in the
newspaper for personal bankruptcies in British
Columbia.

Bankruptcy British Columbia
• Personal bankruptcy in British Columbia is for
individuals who are facing financial difficulties and
finding it hard to manage. There are some bankruptcy
alternatives that could be available to you, although
bankruptcy helps hundreds of British Columbia residents
get out of debt every month.
• To learn more about BC bankruptcy, British Columbia
consumer proposals, and other bankruptcy alternatives
please contact one of our Government Licensed British
Columbia Bankruptcy Experts today. You can schedule a
free consultation and get answers to all of your
questions.

Why you Should use a British Columbia Bankruptcy
Trustee if you have Serious Debt Problems
• Bankruptcy Trustee Expertise: A Licensed
Insolvency Trustee must undergo rigorous training
and receive training in a bankruptcy and law course
before they can be granted a trustee license. Most
trustees have an accounting certification in addition
to their university degree. Bankruptcy trustees in BC
must be investigated by the RCMP and engage in
ongoing professional development.

• Protection From Your Creditors: Under the BC
bankruptcy laws a bankruptcy trustee is the only
debt relief professional who can provide you with
protection from creditor harassment.
• Rebuild Credit: When you file bankruptcy or submit
a
consumer proposal you can rebuild your credit score
faster than by working with a credit counsellor.

• Cost: BC Licensed Insolvency Trustees have their fees
controlled by the government so filing bankruptcy with
a BC Licensed Insolvency Trustees will be cheaper than
by using another debt consultant.
• BC Licensed Insolvency Trustees Have a High Level of
Integrity: Trustees must follow a strict code of ethics,
and in many cases will advise people that they can get
out of debt without filing
bankruptcy. BC Licensed Insolvency Trustees must give
you their best advice, whether that means you will file
bankruptcy with them or not.

• Ease of Mind: BC Licensed Insolvency Trustees must
follow their strict code of ethics and are
also regulated by the government, ensuring that you
will be dealing with a professional when you file
bankruptcy with the services of a BC Licensed
Insolvency Trustees. Under Canadian law the only
debt relief professionals are bankruptcy trustees.

Providing BC Bankruptcy Information
• We wrote this site to provide personal bankruptcy and
consumer proposal information to residents of British
Columbia and Canada. We are proud to provide answers
about consumer proposals – the number one bankruptcy
alternative – and bankruptcy in British Columbia. This site is
for information only.
• Our Government Licensed BC Bankruptcy Trustees offer risk
free evaluation meetings to discuss your options, including
personal bankruptcy or a consumer proposal.
• Don’t hesitate to contact one of our British Columbia
bankruptcy experts today to learn how bankruptcy in BC can
help you get out of debt and get a fresh financial start.

Bankruptcy BC

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