Bankruptcy is a legal process where a debtor who cannot pay his or her bills may be relieved of some debts. This is done by filing an "assignment in bankruptcy" with the help of a bankruptcy trustee. To apply for bankruptcy, a debtor must be unable to pay his or her debts and those debts must total more than $1,000.
A bankruptcy can remain on a debtor's credit record for up to 14 years.
During the bankruptcy process, a bankruptcy trustee takes charge of the debtor's property and distributes the proceeds among his or her creditors in accordance with The Bankruptcy and Insolvency Act.
The Act also provides a system that enables debtors to make proposals to creditors to pay debts over time, usually at a reduced amount.
A bankruptcy trustee is responsible for most of the bankruptcy process, but in some cases a person who is bankrupt may be required to participate in a court hearing.
Generally, hearings are required to resolve three types of case:
- where the bankrupt person seeks to end the bankruptcy (also known as "discharging" it) and he or she has been bankrupt more than once;
- where the bankrupt person and the trustee cannot agree about an aspect of the bankruptcy administration; or,
- where the bankrupt person's discharge from bankruptcy is opposed by a creditor, by the bankruptcy trustee, or by the Office of the Superintendent of Bankruptcy.
The bankruptcy court is located at:
Registrar in Bankruptcy
Victoria Avenue Court House
2425 Victoria Avenue
Regina, SK S4P 4W6
Tel: (306) 787-8982
Debts Not Released By Bankruptcy
Section 178(1) of The Bankruptcy and Insolvency Act sets out certain debts that are not released by an order of discharge. The most common are any fine, penalty, restitution order, child support payments and alimony payments that are set out in a court order or agreement, and any debt arising out of fraud. It is important to note that student loans are not dischargeable for a period of 10 years from when the bankrupt ceased to be a full or part-time student.
A trustee or lawyer can provide more information. Consult the telephone directory for listings.
In Saskatchewan, the Provincial Mediation Board can provide information about personal debt management, orderly payment of debts, mortgage foreclosures and credit counselling programs.