Debt payments
Some of your debts are discharged after you declare bankruptcy and you won't have to pay them, so that's one less thing to worry about. Other debts, such as your mortgage, alimony or child support, will have to be paid.
You and your trustee work together to ensure that all required payments are made during the bankruptcy process. The two of you have a monthly meeting where you bring your paycheque and make payments. You will also have to attend credit counselling sessions.
Assets
People often assume that all your assets are taken when you declare bankruptcy and you're left with nothing -- but that's not true. The aim isn't to leave you empty-handed; in fact, one of the goals of trustees is to help people through the process leaving their dignity intact. After all, bankruptcy is the means to an end where you can start over.
So what can you keep? Exemptions are complicated and depend on where you live; check with a local bankruptcy trustee for a list of exemptions. Most provinces and territories try to leave you with limited amounts of essentials: food, heating fuel, clothing, furniture, pensions, retirement savings and the tools of your trade. As for your car or your home, whether you can keep them depends on the amount of equity left, and varies by province.
Bankruptcy lasts up to seven years
Equifax and TransUnion are the two credit bureaus in Canada. According to TransUnion, a personal bankruptcy will stay on your file for six years from the date of discharge if you live in British Columbia, the Northwest Territories, Nunavut, Alberta, Saskatchewan, Manitoba and Nova Scotia. It's seven years for the other provinces. Equifax keeps a bankruptcy on your file for six years from the date of your discharge.
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