Personal Bankruptcy: Overview
A legal, government-regulated way to eliminate your debt and reset your financial future.
Want to Skip the Info?
We’ve got you covered:
What is Personal Bankruptcy?
If your debt feels overwhelming and nothing seems to help, personal bankruptcy may be the reset you need.
Personal bankruptcy in Canada is a federally regulated process that helps eliminate most or all of your unsecured debt. It offers legal protection from creditors, stops collection calls, and gives you the chance to move forward — not backward.
With the help of a Licensed Insolvency Trustee (LIT), you’ll explore whether this path is the right one for you and file with clarity and confidence.
Find Out How Much You Can Save With a Consumer Proposal!
Try our easy-to-use calculator and learn how much a consumer proposal could cut down your debt.
Understand What Bankruptcy Really Means
Bankruptcy isn’t the end — it’s often the first real step toward peace of mind.
In fact, for many Canadians, it can be a chance to reset financially and start rebuilding with a clean slate. That said, like any financial decision, bankruptcy comes with both benefits and drawbacks. It can impact your credit score, assets, and future borrowing ability — which is why it’s important to understand the full picture before moving forward. At Spergel, we’re here to walk you through it all, without pressure or judgment.
Overview
What Debts Are Cleared by Bankruptcy?
Filing for personal bankruptcy in Canada can eliminate a wide range of unsecured debts, including:
- Credit card debt
- Payday loans
- Unpaid bills and collection
- Income tax debt (including CRA)
- Student loan (if it’s been 7+ years since you studied)
Secured debts like a mortgage or vehicle loan aren’t automatically included, but your Licensed Insolvency Trustee can guide you through how those assets are handled.
eligibility criteria
Who Can File for Bankruptcy?
Bankruptcy is available to many Canadians who feel stuck with debt they simply can’t repay. You may qualify if:
- You owe at least $1,000 in unsecured debt
- You can’t meet your debt payments as they come due
- You live in, do business in, or own property in Canada
Whether you’ve experienced job loss, health issues, or unexpected expenses, you’re not alone. Bankruptcy is here to give you breathing room and a fresh start under fair and supportive personal bankruptcy rules in Canada.
next step
How Do I Get Started?
It all starts with a conversation.
Licensed Insolvency Trustees (LITs) are the only professionals in Canada legally authorized to file for personal bankruptcy. At Spergel, we make it simple, supportive, and judgment-free. Here’s what we offer:
- Free consultations — no pressure, no commitment
- A clear explanation of your options
- A customized plan based on your needs
- Ongoing support from your dedicated LIT — not a call centre
Everyone’s Situation is Different. Let’s Talk About You.
Book a free consultation with Spergel. We’ll walk through your situation and build a plan that gives you the relief you deserve.
Real Canadians. Real Success — Like David
“Spergel has been a true lifesaver for me. Facing overwhelming debts and a very challenging time in my life in general, they expertly navigated me through the bankruptcy process with compassion and efficiency. Their hands-on approach made the process seamless. Now, I’m on the road to financial recovery, free from the burdens of the past. Thank you, Spergel, for providing the support I needed for a fresh start.”
– David, Ontario
David’s Story is just one of many
David’s story is just one example of how bankruptcy, when guided by the right support, can offer real hope and lasting relief. Whether you’re dealing with personal loans, tax debt, or creditor pressure, bankruptcy can be a lifeline. Explore more Success Stories from Canadians we’ve helped — or reach out so we can help you, too.
Real Stories from People Just Like You
See how Canadians are regaining control through bankruptcy — and building brighter financial futures.
Is Bankruptcy the Right Option for You?
Let’s chat about your financial goals and explore whether bankruptcy is the right fit.
Quick Contact Form
"*" indicates required fields
Book a Specific Date/Time
Call Us During Business Hours
When you call, you will be connected with one of our Licensed Insolvency Trustees (LITs) during our regular business hours.
Toll Free: 1-877-557-7367
Monday to Friday 8am – 7pm EST
Saturday 9am – 4pm EST
Sunday 10am – 5pm EST
You can also reach us at one of our office locations phone numbers. See our list below on this page.
Mobile Text Us During Business Hours
From your phone, you will be connected with one of our Licensed Insolvency Trustees (LITs) during our regular business hours.
Monday to Friday 8am – 7pm EST
Saturday 9am – 4pm EST
Sunday 10am – 5pm EST
Not during office hours? Use our Chat on this page 24/7 and get connected for answers and live chat later.
Email Us
Sometimes a simple email is the way to get things rolling.
Expect a reply from us during our business hours:
Monday to Friday 8am – 7pm EST
Saturday 9am – 4pm EST
Sunday 10am – 5pm EST
Click the button below to reach or use our email address:
hello@spergel.ca
Let’s Find What Works for You
Busy Schedule? Book a Date/Time:
Prefer to Call? Reach Us Here (Toll Free):
Find a Spergel Office Near You
Use the map to find a Spergel office near you and connect with a Licensed Insolvency Trustee.