Bankruptcy Services
in Ontario
Eliminate almost all of your unsecured debts and get a fresh financial start
Goth and Company eliminates overwhelming debt for Ontario residents through government-approved bankruptcy and debt settlement programs. As Licensed Insolvency Trustees, we are the only professionals legally authorized to file bankruptcy and consumer proposals in Ontario.
Personal Bankruptcy Services You Can Trust in Ontario
Filing for bankruptcy in Ontario requires expertise you can rely on. Not all bankruptcy services provide the same level of professional support, and choosing the right Licensed Insolvency Trustee can make all the difference in your debt relief journey.
Goth and Company has been incorporated since 1993 and currently takes a personal approach to understand your unique financial situation and guides you through every step. We review all of your options and ensure you understand how bankruptcy will impact your life in Ontario.
When you’re ready to take control of your financial future, you choose the path that makes the most sense for your situation. Goth and Company is one of Ontario’s most experienced bankruptcy service provider, having guided thousands of Ontario residents through successful debt elimination.
Looking for a Bankruptcy Trustee?
Find out why you need a Licensed Insolvency Truste instead.
The Bankruptcy & Insolvency Act
Everything you need to know about Canada’s insolvency legislation.
Eliminate Most Unsecured Debts
Debts Closed or Cancelled by Bankruptcy:
- Credit Card Debt
- Income Tax Debt (CRA debts included)
- Bank Loans (Personal and unsecured loans)
- Payday Loans
- Student Loans (If 7+ years since completion)
- Lines of Credit
- Phone Bills & Utility Bills
- Personal Loans
Who Should Consider Bankruptcy in Ontario?
Bankruptcy is designed as a last resort for individuals and families who are in a position where they cannot afford to deal with their debt in any other fashion. Here are warning signs you should be discussing your finances with a Licensed Insolvency Trustee:
- Avoid answering the phone afraid of harassing creditors
- Paying minimum payments on credit cards
- Owe CRA back taxes for multiple years
- Wages garnished for unpaid bills
- Turned down multiple times for extended credit
- Use one credit card to pay another
- Repeatedly use cash advance or payday loans
- Skip payments or are behind on accounts
Bankruptcy in Ontario can eliminate most types of unsecured debt. Once you file bankruptcy, creditors must deal directly with your Licensed Insolvency Trustee instead of contacting you directly.
Bankruptcy & Debt Relief Services
Several bankruptcy alternatives exist in Ontario. Bankruptcy is typically considered as a last resort for individuals and families who cannot afford to deal with their debt in any other way. As Licensed Insolvency Trustees, Goth and Company provides immediate creditor protection through the federally regulated bankruptcy process.
Personal Insolvency Filing
Filing for bankruptcy can only be done by a Licensed Insolvency Trustee and must follow procedures outlined in the Bankruptcy & Insolvency Act of Canada. Bankruptcy is designed to relieve honest but unfortunate debtors of their debts through a legal process that eliminates most unsecured debts.
Consumer Proposals
An alternative to bankruptcy that allows you to keep all your assets while paying only a portion of what you owe. This debt settlement agreement can reduce your debts by up to 70% over a maximum 5-year term. Our consumer proposals get accepted at a rate of 99% or better. Goth and Company has this exceptional success rate because our Licensed Insolvency Trustees understand exactly what creditors expect and create realistic debt solutions.
Debt Consolidation
We help you combine multiple debts into a single manageable payment. We’ll help you explore all consolidation options before considering bankruptcy as your debt relief solution.
Find out if declaring bankruptcy is right for you!
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Recent Posts About Bankruptcy
We publish new content based on questions and feedback from our clients and visitors.
Will This Clear My Credit Report?
A Consumer Proposal or Personal Bankruptcy Will Clear Up My Credit Report Myth or Fact? Several times a week I get calls from individuals (debtors) who believe that if they go through a consumer proposal or personal bankruptcy their debts will be removed from their...
How Much Will I Have To Pay If I Go Bankrupt?
How Much Will I Have To Pay If I Go Bankrupt? First We Evaluate Your Options With You When you meet with a Licensed Insolvency Trustee (LIT) to review your situation and your options, the bankruptcy process results in the least amount you pay and is usually the...
Do I Have To Disclose All Of My Debts?
Do I Have To Disclose All Debts In A Consumer Proposal Or Bankruptcy? Why It Matters When a consumer proposal or bankruptcy starts there is immediate protection from the collection action of all unsecured creditors against the debtor. To get this protection, certain...
Bankruptcy Is Not Just “Bankruptcy”
Bankruptcy Is Not Just "Bankruptcy" What is it Then? Bankruptcy is commonly used to describe one of the government law processes available in federal legislation known as the Bankruptcy and Insolvency Act (BIA). The BIA regulates the options available to deal with...
Frequently Asked Questions
Below are commonly asked questions about bankruptcy in Ontario
What Exactly Is Bankruptcy and How Does It Work?
Bankruptcy is a legal process, provided and regulated by the federal government, to help citizens and permanent residents overcome unmanageable debt and have a fresh start. Through bankruptcy you can be discharged from your unsecured debts, meaning that your debts are eliminated and can no longer be enforced by your creditors.
It works by filing official documents with the federal government, which immediately stops all creditor collection activities through a “stay of proceedings.” Key mechanisms include surrendering non-exempt assets to your trustee, monthly reporting requirements, mandatory counselling sessions, and potential surplus income payments based on government guidelines.
Timeline typically involves 9 months for first-time filers or 21 months if surplus income payments are required. For second bankruptcies, the timeline extends to 24 or 36 months respectively.
What Happens to Your Assets During Bankruptcy?
Ontario’s Execution Act determines which assets are exempt from seizure during bankruptcy proceedings. The protected assets include:
- Home equity up to $10,000 (if you co-own a home this amount differs based on your ownership percentage)
- Vehicle equity up to $6,600
- Household furnishings and appliances up to $13,150
- Work tools required to earn income up to $11,300
- All necessary clothing for you and your dependents
- All medical and dental aids
- All RRSPs and RESPs
- Enough food to support you and your dependents for up to 12 months
The trustee evaluates all assets, determines which exceed exemption limits, then either sells them or allows you to pay their value to keep them. For farmers, additional exemptions apply including livestock and equipment required for farming operations.
What Are the Alternatives to Bankruptcy in Ontario?
At Goth and Company, we believe it’s important for everyone to understand that there are more options than just bankruptcy. To ensure everyone is aware of what options exist, we provide a free initial consultation meeting with a Licensed Insolvency Trustee. The alternatives include:
- Various debt consolidation loans
- Debt management plans
- The Orderly Payment of Debts program
- Filing a consumer proposal
- Declaring bankruptcy
Consumer proposals are currently the preferred insolvency solution in Canada. They allow you to negotiate a settlement with your unsecured creditors, often reducing debts by up to 70% while keeping all your assets. You should consider bankruptcy over alternatives when you cannot afford any monthly payment plan and want the fastest path to debt elimination.
What Are the Risks and Limitations of Bankruptcy?
Bankruptcy cannot eliminate all types of debt. The exceptions include:
- Secured creditors (mortgage or car loan)
- Court fines and penalties (including traffic violations)
- Debts obtained by fraud or misrepresentation
- Civil lawsuits involving intentional bodily harm, sexual assault or wrongful death
- Student loans, if you have taken any classes in the 7 years prior to filing
Process limitations include mandatory counselling sessions (two sessions required), monthly financial reporting to your trustee, payments based on income, and the requirement to surrender certain assets. You must also hand over all credit cards to your trustee to be cancelled and closed.
Joint Debt and Tax Considerations
Filing bankruptcy with joint debts (like joint credit cards or co-signed loans), your bankruptcy only eliminates your responsibility of the debt. Co-signers remain fully responsible for the entire debt. This often affects married couples and business partners who must plan carefully.
Forgiven debt through bankruptcy does not create taxable income for you. You won’t receive a tax slip for eliminated debts and won’t owe income tax on the amounts discharged.
Bankruptcy doesn’t directly affect your spouse’s credit score unless they’re jointly responsible for the debts. However, lenders may consider household income when your spouse applies for credit.
Who Qualifies for Bankruptcy in Ontario?
In Ontario, to be eligible to file for bankruptcy, you must meet specific federal requirements. You qualify for bankruptcy when you owe at least $1,000 in unsecured debt, cannot make your regular payments as they become due, or cannot pay all of your debts if all your property was sold.
Key limitation: you cannot file bankruptcy independently – federal law requires working with a Licensed Insolvency Trustee who handles the process. You must also be a Canadian citizen or resident, or do business in Canada, or own property in Canada.
How Much Does Bankruptcy Cost in Ontario?
Bankruptcy costs are regulated by the Office of the Superintendent of Bankruptcy. The cost depends on your income, family size, and assets you own. Federal regulations set the costs with no hidden fees.
For first-time filers with no surplus income, you can expect automatic discharge after 9 months. If you have surplus income (calculated based on government guidelines), the timeline extends to 21 months. The surplus income calculation takes into account your monthly income, number of people in your household, income of others in the household, and certain necessary expenses like medical costs.
First vs. Second Bankruptcy Timeline:
- First bankruptcy: 9 months (no surplus) or 21 months (with surplus)
- Second bankruptcy: 24 months (no surplus) or 36 months (with surplus)
How Does Bankruptcy Affect Your Credit Score?
Bankruptcy filing is reported to the Credit Bureau resulting in an R9 rating on your credit report. An R9 rating means the debt has been sent to a collection agency or is included in a bankruptcy filing. This bankruptcy notation remains on your credit history for 6-7 years for a first bankruptcy, or up to 14 years for subsequent bankruptcies.
While credit impact is significant, many people find their credit scores had already dropped considerably due to missed payments and high debt levels before filing bankruptcy. You can begin rebuilding your credit immediately after discharge through secured credit cards and consistent payment habits.
Life After Bankruptcy Discharge
Discharge marks the beginning of your fresh start. You receive a Certificate of Discharge showing that you have been cleared of your debts. Most people can access secured credit cards relatively soon after discharge – these require a deposit equal to your credit limit but help rebuild your credit history.
You can start contributing to RRSPs immediately after discharge since these remain protected in any future financial difficulties. Building a down payment and stable employment history improves your chances for future mortgage approval, though timelines vary significantly based on individual circumstances and lender requirements.
Banks will offer basic banking services after discharge, though some may require secured credit products initially. Relationships improve as you demonstrate responsible financial management over time.
How to File for Bankruptcy in Ontario
Filing bankruptcy in Ontario requires working with a Licensed Insolvency Trustee. Only Licensed Insolvency Trustees can file and administer a bankruptcy in Canada. Process begins with a free consultation where we assess your financial situation and explain all available options.
The Bankruptcy Process Timeline:
- Initial meeting: Free consultation to review your situation and all options
- Document preparation: Gather required information and prepare bankruptcy forms
- Filing: Submit bankruptcy documents electronically to the government
- Stay of proceedings: Immediate creditor protection takes effect
- Ongoing requirements: Monthly financial reporting, two mandatory counselling sessions, surplus income payments (if your income exceeds government thresholds), and surrender of any non-exempt assets to your trustee
- Discharge: Receive Certificate of Discharge and debt freedom
Process typically takes 9-21 months for first-time filers, depending on your income situation.
Licensed Insolvency Trustees in Major Ontario Cities
We provide comprehensive bankruptcy services throughout Ontario, including bankruptcy services in Toronto and surrounding areas. Our Licensed Insolvency Trustees also serve residents throughout the province, including bankruptcy services in Ottawa and other communities across Ontario.
Throughout Toronto, Ottawa, and other Ontario communities, our experienced team provides the same high level of professional bankruptcy services and debt relief solutions. We understand the unique financial challenges facing Ontario residents and tailor our approach to meet your specific needs.
Get Your Free Consultation
Goth and Company has been incorporated since 1993 and currently helps thousands of people overcome their debt and get a fresh start through personalized bankruptcy services that combine decades of expertise with compassionate guidance through even the most complex financial situations.
Take control of your financial future today. Our Licensed Insolvency Trustees help you understand your options and find the best path forward.
Goth and Company offers free bankruptcy consultations because we believe every Ontarian deserves to understand their debt relief options without pressure or cost.