Filing Bankruptcy in Canada: Minimum Amount of Debt Needed
According to the Bankruptcy & Insolvency Act, the federal legislation that governs the bankruptcy process in Canada, the minimum amount of debt needed for filing bankruptcy in Canada is $1,000 or greater.
However, very few people with $1,001 in debts go bankrupt. In fact, a study done in 2005 states that an average person filing bankruptcy in Canada has unsecured debts of around $50,000.
The answer to the question is simple:
A person with a high income may be able to service $100,000 in debts without any problems. Another person with a lower income and higher expenses, perhaps due to a larger family, may have great difficulty servicing $10,000 in debts. The person with the lower debts may be a candidate for bankruptcy protection, while the person with higher debts may be able to service them on their own.
If you are feeling a great deal of stress because of your debts, or if you are already receiving calls from collection agents at home and at work, it is time to take action.
To conclude: even if the amount you owe is equal or greater than the minimum amount of debt required by the law for filing bankruptcy in Canada, that does not necessarily mean that you are condemned to bankruptcy. To find out what is the best option in your case, we recommend you to contact a licensed trustee today.