Canadian Bankruptcies

Canadian bankruptcies occur when individuals or businesses are unable to pay their debts and seek legal relief through a formal process. This process, managed by the Bankruptcy and Insolvency Act, involves the transfer of assets to a trustee who distributes them to creditors, allowing the debtor to resolve debts and potentially regain financial stability. Bankruptcy provides a legal "fresh start" but impacts credit ratings and financial reputation. It is typically considered a last resort after exploring options like debt consolidation or negotiation, and is designed to balance the interests of debtors and creditors fairly within the Canadian legal framework.