There are two ways for a person or business to become bankrupt.
The most common is for a person to choose to file for bankruptcy to deal with their unmanageable debt.
Most bankruptcies are considered ‘voluntary’ – which means that the person (or business) unable to pay their debts seeks the services of a Licensed Insolvency Trustee “LIT” (formerly Bankruptcy Trustee) to help with bankruptcy.
In a case where a person chooses a bankruptcy, legal bankruptcy documents would be prepared and signed, which begins the official bankruptcy process. Only a Licensed Insolvency Trustee has the legal authority to help with bankruptcy in British Columbia.
Rarely, a personal or business creditor may petition the court to make an order which then assigns the person or business into bankruptcy.
Your creditors cannot prevent you from filing a bankruptcy.
Book a free debt consultation [1] with a Licensed Insolvency Trustee. We can help you assess whether declaring bankruptcy is the right option for you.