3. Make a repayment plan

If a debt must be repaid after bankruptcy, you will need to make a plan to pay it back. For example, you can talk to your creditors about a monthly repayment plan and agree to repay the amount you owe over time.

Usually, if you create a debt repayment plan:

• you are charged less or no interest by creditors
• the plan will last for a maximum of 5 years
• you will need to create a budget
• your creditors will stop calling you to collect money

If you use a debt repayment plan, it will appear on your credit report for 2 years after you finish paying back the money. After 2 years, no one will be able to see that you used a debt repayment plan.

You can manage your own debt repayment plan, or a non-profit credit counsellor can manage your plan for a small fee. 

Secured debts

Secured debts are debts that have collateral. Collateral is what you agree to use as insurance that you will pay your debt.

For example, the collateral for a mortgage is your house, and the collateral for a car loan is the car. If you cannot pay back your mortgage or a car loan, the lender can take your house or your car to cover some or all of the amount you owe.

If you cannot pay a secured debt, you can include it in your bankruptcy by giving up the collateral. The secured creditor will be paid back from the sale of the collateral. If you cannot pay off the whole debt by selling the collateral, the amount that you still owe will be added to your other unsecured debts.