Not everyone qualifies for bankruptcy. According to the Bankruptcy and Insolvency Act, there are general qualifications that you must meet to be eligible for bankruptcy. First, you must be a Canadian resident. Second, you must be unable to pay your bills when they come due. Third, you must owe more than $1,000.
Remember, these are just general qualifications. There are other factors to consider in declaring bankruptcy. Personal bankruptcy is for those that, after paying for a basic cost of living, cannot pay down their debt. If you are looking for a fresh financial start, bankruptcy allows for specific advantages. It gives you legal protection from creditors and eliminates the majority of unsecured debts. It is relatively inexpensive when compared to the cost of the debt, and you can usually be debt-free within 9-21 months after a first bankruptcy.