What Is Bankruptcy?
While insolvencies have decreased significantly over the past years, nearly 31,000 Canadians filed for personal bankruptcy in 2021. But what is bankruptcy, and what are the benefits of this financial move?
Bankruptcy refers to the legal process of surrendering all or some of your assets to get discharged from your debts. When declared “insolvent,” you owe more than what you own, and your assets are used to repay your creditors. The process is overseen by a Licensed Insolvency Trustee (LIT).