Can a Person with no Assets File Bankruptcy in Ontario?

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 trustees in bankruptcy, such as David Sklar & Associates, can file and administer bankruptcies.

In a bankruptcy, when there are no assets or equity to divide among the unsecured creditors, they are still required to write off all of your outstanding debt upon the successful completion of your 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 a bankruptcy. Visit “What Can I Keep if I Declare Bankruptcy in Ontario” for more details.

Surplus Income

An important factor in your bankruptcy, is the amount of surplus income you have. 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 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 honoured all the terms of your bankruptcy, such as filing monthly reports, attending credit counselling 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 Toronto?

If you live in the Toronto area, and are considering bankruptcy, you are welcome to call us at 416-498-9200 to book a free consultation. Our caring professionals will review your finances in detail and discuss all of your options for getting out of debt.

 

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt and live in the Toronto area, call us at 416-498-9200 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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Ready to live debt free?

The best decision I've made was to contact David Sklar & Associates, they are experts in this matters and also have dedicated Licensed Counsellors that provide the best customer support, like Rhoda Lewis, who I highly recommend. She worked tirelessly on my case, explaining ever detail to me willingly. She demonstrates a true interest in her clients. I appreciate how she patiently walked me through what to do, step by step. I now have control over my finances, as a result my life is much more peaceful and I can focus on what matters. Thank you!
Nilda H.
20:18 16 Jun 22
Very helpful and friendly! I am more than satisfied with my experience here. And more than happy with the outcome! Would definitely recommend .
Peggy Bulger
15:10 14 Jun 22
Jerry at David SKLAR helped me thoroughly understand my options and made me feel at ease. If you are looking at this type of service/help, I 100% recommend you give them a call.
Colleen H
12:50 14 Jun 22
Rhoda is a wonderful person, She help me and guided me throughout the process. I couldn’t do it without her support and expertise. Now I can start fresh and full of hope of a better life ahead of me.
ariezel erandio
21:33 06 Jun 22
The service I recieved from David Sklar and Associates was great. I was able to meet with Christin Sylver. She is kind, understanding and, professional. She was able to answer all the quesions that I had regarding my debt. At the end of our meetings, I felt that there is a heavy burden lifted from my shoulders. I recommend Chistine to anyone who is looking into debt relief.
Aliya H
12:11 04 Jun 22
Jerry is a very patient person, he answered all my questions and made this experience so smooth and easy for me. I was not sure what to expect but dealing with him made me feel so much better. He sure knows what he is doing and how to put people at ease for sure (should have done this long ago). I recommend him to anyone I am so glad I had him on my side and now to do my part. Thanks Jerry ur greatPattie
Patty Murphy
21:34 18 May 22
Rhoda Lewis helped me achieve a fresh start two and half years ago! She was very professional with a very warm, caring personality! I emailed her today with a question and she responded quickly. She's great at her chosen profession!!
Debbie Livingston
01:24 11 May 22
Nothing but good things to say about Jackie. She was so nice and so understand and everything was so quick and easy. In a matter of a week, there was the solution that I never thought was possible. Thank you so very much for everything that you have done. ❤️❤️❤️
Cassandra Keenan
21:05 10 May 22
I was in a lot of debt and stress, Jackie Stanley with David Sklar & Associates was very professional, and extremely helpful with getting out of debt. I should of did this sooner, they take the all the weight and stress of a persons shoulders, amazing team at David Sklar & Associates!!
Hubert Z
03:08 10 May 22
Jackie helped me out during a really tough time and she made the entire process very easy and painless. I highly recommend reaching out to her if you find yourself in any financial trouble. You won’t be disappointed!
prettylush 13
02:42 10 May 22
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