Before answering that question, your Licensed Insolvency Trustee must determine if you are insolvent.  By definition, an insolvent person is an individual, or a corporation: 

✔ who is not bankrupt, 

✔ who lives or carries on business in Canada, 

✔ who’s liabilities to creditors as provable claims under the Bankruptcy and Insolvency Act are $1,000.00 or more; and, 

✔ who is unable to meet their obligations as they generally become due; or 

✔ who’s property, if sold, would not produce sufficient funds to pay all your debt obligations. 

If you are an insolvent person, based on your answers to the statements above, then yes, you have the right to use the Bankruptcy and Insolvency Act to resolve your financial situation. 

There are 4 ways you may use the Bankruptcy and Insolvency Act. 

❑ You my file a Consumer Proposal if your debts are not more than $250,000, excluding the mortgage on your principal home. 

❑ You may file a Summary Administration Bankruptcy if your unsecured assets are not more than $15,000.00.  Please note that your household and personal assets are not usually included in the $15,000.00 amount. 

❑ You may file an Ordinary Proposal if your debts are greater than $250,000, excluding the mortgage on your principal home. 

❑ You may file an Ordinary Administration Bankruptcy if your unsecured assets are greater than $15,000.00.  Again, please note that your household and personal assets are not usually included in the $15,000.00 amount. 

Most insolvent people file either a Consumer Proposal, which is the simplest form of a proposal, or a Summary Administration Bankruptcy, which is the simplest form of bankruptcy.