If you have a lot of debt and have trouble paying it off, you may file for bankruptcy. To do this:
- you give everything you own to a licensed insolvency trustee; and
- they sell these things and use the funds to settle your debt.
Personal bankruptcy falls under federal law, the Bankruptcy & Insolvency Act.
Bankruptcy can affect your credit rating because it stays on your record for 6 years for a 1st bankruptcy, and 14 years for a 2nd Bankruptcy, depending on the credit bureau that's reporting.
Who can file for bankruptcy?
You may file for bankruptcy if you've lived or done business in Canada in the last year and you are "insolvent", meaning:
- you owe at least $1,000; and
- you are not able to meet your debts.
Will all of your debt be taken care of?
Secured debt is when you:
- pledged 1 of your assets as collateral; or
- took out a loan to purchase an asset.
Some secured debt may remain.
How long does bankruptcy last?
A court decides how long. It can be as little as 9 months.
If you decide to file for bankruptcy, the process must be handled by a licensed insolvency trustee.
Select a trustee who is licensed to practise in Yukon. Look at the list of licensed insolvency trustees. You also look in the Yellow Pages of your phone directory under "Bankruptcies — Trustees" for Yukon. Trustees located outside of Yukon usually accept collect calls.
For further information on bankruptcy, contact the Yukon Registrar in Bankruptcy.
In person: Court Services, Andrew A. Philipsen Law Centre, 2134 2nd Avenue (ground floor) in Whitehorse. Our office is open Monday through Friday from 9 a.m. to 4 p.m.
Phone: 867-667-5938 or toll free in Yukon 1-800-661-0408, extension 5938
You can also visit the federal Office of the Superintendent of Bankruptcy.