Like a consumer proposal, bankruptcy is a legal process that helps you get out from underneath the burden of your debt while providing you with relief from collection by your creditors. Unlike a consumer proposal, your assets vest with the Trustee in a bankruptcy when you file for bankruptcy until you successfully complete the process. The term of the process varies depending on whether you have been bankrupt before and whether you have surplus income - as defined by the Guidelines of the Superintendent of Bankruptcy - as a result the term of a bankruptcy can be a minimum of 9, 21, 24 or 36 months in length.
Bankruptcy is a comparatively inexpensive option for resolving your financial difficulties but as a result it comes with additional obligations: attending counselling sessions, submitting reports on your income each month, providing your Trustee with income tax information, and making a monthly payment. At the end of the process when you have successfully fulfilled each of the duties required you will no longer be required to pay your debts - subject to some restrictions which we discuss here.