Can a Person with no Assets File for Bankruptcy in Ontario?

Can a Person with No assets file bankruptcy in Ontario

Table of Contents

Can I Declare Bankruptcy Without Any Assets?

Yes, as long as you qualify for bankruptcy in Ontario, you can have a bankruptcy trustee file (declare) bankruptcy on your behalf, even if you have no assets.

In Ontario, only licensed insolvency trustees in bankruptcy, such as David Sklar & Associates, can file and administer bankruptcies.

In bankruptcy, when there are no assets or equity to divide among the unsecured creditors, they are still required to write off all of their outstanding debt upon the successful completion of the bankruptcy.

In Canada, the laws that govern bankruptcy are meant to be fair to everyone involved, the debtor and their unsecured creditors.

If you have assets, the federal and Ontario governments have identified a number of assets that cannot be seized in bankruptcy. Visit “How Do I File For Personal Bankruptcy In Ontario?” for more details.

Surplus Income

An important factor in bankruptcy is the amount of surplus income. Check out ‘Surplus Income in the Bankruptcy Process’ for more details.

Basically, your total family income, less allowable deductions such as medication and child support, is compared to the number of people in your family. Then, based on guidelines set by the Superintendent of Bankruptcy – it is determined whether or not you have surplus income.

Your licensed insolvency trustee will explain this to you in detail.

If it is decided that surplus income exists, then you will be required to pay 50% of the surplus into your estate for distribution to your unsecured creditors.

As well, if you have surplus income and this is your first bankruptcy, the length of your bankruptcy will go from 9 months to 21 months.

Release From Unsecured Debts at End of Bankruptcy

At the end of your bankruptcy period, if you have honored all the terms of your bankruptcy, such as filing monthly reports, attending credit counseling sessions, and making your required monthly payments – you will be released from the unsecured debts included in your bankruptcy.

Note – not all unsecured debts can be included in a bankruptcy, things like child support, alimony, court fines, and some student loans cannot be erased by bankruptcy.

Once again, your trustee will explain this to you in detail.

Considering Bankruptcy in Ontario?

If you are struggling financially and looking for relief, call David Sklar & Associates and book your consultation today. We help people who are drowning in debt and need a solution. You have options we can help you pick the right ones and get the debt relief that you’re looking for

Contact David Sklar

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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Very knowledgeable, helpful and fast service
Anthony Mcfeat
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I am so delighted to have found this company. They are the best. Everyone in the office is very nice never to busy to assist you. Thank you David Sklar and Shirley and associates for being you. 😊🌺😊
Deborah
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Trina was amazing and quick. No judgement was made and they all made me feel I made the right decision. Would highly recommend them
Crystal Minaker
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Trina was very easy to work with. Any questions I had were answered promptly. What seemed like a complicated process was explained in a clear manner that wasn't at all intimidating. It made for a more comfortable experience during a turbulent time.
Eldon Aubie
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Jackie is very professional...I would recommend David Sklar to anybody especially knowing how understanding they are.
Kimberley Lyder-Niles
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I had Shirley and Kim take care of my finances. From the very first moment I spoke with Shirley I could sense how caring, professional and patient she was. She was also very understanding with my lack of financial knowledge and never made me feel dumb as some other companies have.Her and Kim were always very quick to respond to emails, always available if I called and answered my abundance of questions in such detail that I now believe I have a thorough understanding of how finances work. I am hopeful about my fresh financial start and very grateful I had the privilege of meeting and working with these two beautiful women.I also spoke briefly with Richard over zoom and he to was extremely friendly, patient and made sure I was well taken care of.I could not recommend David Sklar and Associates more. Thank you again.
Shayleen Muzi
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Good professional team! Jennifer is the best, helped me through everything and answered all my questions. Made the process easy! Would recommend Jennifer and the team at David Skylar.
gary round
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Christine and her team are amazing and professionals. I called for help and she responded right away to help me.thank you and I really appreciated for everything you do.
Marcelina Sunas
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Thank you so much for the helpYou took away the most stressful things in our lives which was our dept you guys are amazing and would recommend you to everyone
Kaitlyne Sunas
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The staff here are fantastic (Cori handled my visit) and are willing to go above and beyond to help people who need help, I recommend them 100% for people who are looking to move on in good standing.
Vito De
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