How consumer proposals and bankruptcy work under the Bankruptcy and Insolvency Act, what they cost, what you keep and which debts survive.
Formal debt relief in Canada runs through one federal statute, the Bankruptcy and Insolvency Act (BIA), and one profession, the Licensed Insolvency Trustee (LIT), supervised by the Office of the Superintendent of Bankruptcy (OSB). The two main tools are the consumer proposal, a binding deal to repay part of your unsecured debt over up to five years, and personal bankruptcy, which releases most debts in exchange for your non-exempt assets and, if your income is high enough, monthly surplus income payments. The fees are set by the BIA General Rules, not by the trustee's marketing, and what you keep depends on your province's exemption laws.
Start with the overview of consumer proposals versus bankruptcy. Then read about consumer proposal eligibility and the $250,000 limit, bankruptcy discharge at 9, 21, 24 or 36 months, the 2026 surplus income standards, trustee fees and the OSB levy, exempt property by province and the debts that survive, including the student loan 7-year rule. Dollar amounts in examples are illustrative unless the text names the rule they come from.
Options, Costs and 2026 Rules
When a personal bankruptcy ends in Canada under BIA s. 168.1, how surplus income and a second bankruptcy extend it, and what happens if a creditor or the trustee opposes discharge.
Options, Costs and 2026 Rules
Who can make a consumer proposal under the BIA in 2026, how the $250,000 limit is counted, the step-by-step timeline, creditor voting and the proposed $325,000 change.
Options, Costs and 2026 Rules
How a consumer proposal and personal bankruptcy compare in Canada in 2026 on eligibility, cost, assets, income, duration and credit impact, with the alternatives.
Options, Costs and 2026 Rules
Which debts a Canadian bankruptcy or consumer proposal does not release under BIA s. 178, how the student loan 7-year rule and 5-year hardship relief work, and secured debts.
Options, Costs and 2026 Rules
How exempt property works in a Canadian bankruptcy, the BIA RRSP rule, Ontario's 2026 exemption amounts and how other provinces and Quebec differ.
Options, Costs and 2026 Rules
How surplus income works in a Canadian bankruptcy under OSB Directive 11R2-2026, the 2026 Superintendent's standards, the $200 threshold and how it extends the bankruptcy.
Options, Costs and 2026 Rules
The trustee fee tariff in the BIA General Rules for consumer proposals and summary bankruptcies, the 5% OSB levy, filing and counselling fees, and the changes proposed in 2025.
