Bankruptcy 

Filing bankruptcy is usually the very last resort for people the find theselves unable to pay their financial obligations to their creditors. It is a powerful vehicle for a debtor to get a fresh financial start.

Canada's bankruptcy laws are designed to permit an honest but unfortunate debtor to obtain a discharge from his or her debts while treating creditors equally and fairly.

Last year in Canada, more than 100,000 people filed for personal bankruptcy or filed a bankruptcy proposal.

Bankruptcy is a legal proceeding that relieves a person of his or her financial obligations.  A bankruptcy proposal lets a debtor restructure his or her financial affairs, often allowing for reduced payments and/or an extension of the time to pay.

Student loans can no longer be erased by bankruptcy, unless the debtor had completed studies at least 10 years previous to applying for bankruptcy.

Orderly Payment of Debt (OPD)

OPD is an option where your trustee files a proposal or an arrangement between you and your creditors to have you pay off only a portion of your debts, extend the time you have to pay off the debt, or provide some combination of both. To be acceptable, your creditors must be better off under a proposal than if you go bankrupt.