1. Meet with a Licensed Insolvency Trustee

A trustee in Ontario must have a federal licence to file your bankruptcy. You can use the government of Canada’s website to find a Licensed Insolvency Trustee.

Your first meeting with a trustee is usually free. But if you decide to file for bankruptcy, you have to pay the trustee for their services or sell your assets to cover their fees.

If you can't find a Licensed Insolvency Trustee or you can't afford to pay the regular fees, you might be able to get help from the Bankruptcy Assistance Program. The Bankruptcy Assistance Program helps those who can't afford to pay the normal fee for a Licensed Insolvency Trustee, or who can't find one in their area.

When you file for bankruptcy:

• you must give up all your credit cards to your trustee
• you must first tell a lender that you are bankrupt if you plan to borrow more than $1,000
• you must file monthly statements of your income and expenses with your Licensed Insolvency Trustee
• you don't have to make any more payments on your unsecured debts
• lawsuits against you that are related to your debts will stop

Counselling sessions

You must go to two financial counselling sessions. These sessions can be with your trustee, or another person who your trustee recommends. The counsellor must be licensed as a “Registered and Qualified Insolvency Counsellor” through the government.

The sessions will help you understand how you got into financial trouble and how to manage your money in the future. The first session is usually during the first month you are bankrupt. The second session is usually around the sixth month.