Bankruptcy Eligibility Criteria

What are the criteria for claiming bankruptcy? Have a friend, not entirely literate, so trying to help out. Incurred a lot of debt (40k), owns a house (trailer (40k)), and has zero income now, or in the foreseeable future. Lost his job three years ago, and has been living on credit since then. 59 years old, so job prospects are bleak, at best. Is there any course of action available, to remove his debt, and also allow him to live a while longer?

One Response to “Bankruptcy Eligibility Criteria”

Desmond West-Chow, CIRP, Trustee said...

The ‘requirements’ for bankruptcy are fairly low in that an individual must live or carry-on business in Canada, owe at least $1,000 and has either missed payments, is unable to make upcoming payments or if the total amount of their property is not worth as much as their total debt.

In order to determine the best course of action for your friend, it would be best to sit down with a local trustee and go over some of the details of your friends situation. This will enable the trustee to go over an individual assessment and offer the solutions that may be best suited.