Can I declare personal bankruptcy if I receive social assistance?

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Yes, you can file for personal bankruptcy in Canada even while on social assistance. It offers a fresh start if debts are overwhelming, but you’ll need to report all income, including social assistance. This affects your bankruptcy proceedings, such as monthly contributions.

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Question

Can I be on social assistance and still declare bankruptcy? I’m receiving social assistance and need to know if I can still declare bankruptcy.

From: Anonymous Question, Manitoba (MB)

Debt Insiders Answer

Sure, you can be on social assistance and still file for bankruptcy in Canada. Think of bankruptcy as a fresh start for those who can’t keep up with their debts. Your social assistance won’t stand in the way of filing, but you do need to report any income you have, including these benefits. This income will play a part in how the bankruptcy trustee views your financial landscape, especially in figuring out if you have extra income and whether you’ll need to contribute toward the bankruptcy for a certain time.

From: Insider Scott

Office of the Superintendent of Bankrupty (OSB) Answer

Yes, you can be on social assistance and still declare bankruptcy in Canada. The Bankruptcy and Insolvency Act does not prohibit individuals on social assistance from filing for bankruptcy. You should consult with a licensed insolvency trustee for guidance specific to your situation.

From: This answer is provided by scanning the OSB Bankruptcy & Insolvency Act and related directives

Related Questions

Here are the top 5 frequently asked questions related to declaring bankruptcy while on social assistance, tailored for the Canadian context:

1. Can I file for bankruptcy if I am on social assistance?

Yes, you can file for bankruptcy even if you are on social assistance.

2. How does social assistance income affect my eligibility for Chapter 7 or Chapter 13 bankruptcy?

Social assistance income is generally exempt from the bankruptcy means test, but it will be considered in your overall financial assessment.

3. Will filing for bankruptcy affect my social assistance benefits?

Filing for bankruptcy typically does not affect your eligibility for social assistance benefits.

4. Do I need to include my social assistance income in my bankruptcy application?

Yes, you must include all sources of income, including social assistance, in your bankruptcy application.

5. Can I still file for bankruptcy if I have no other income besides social assistance?

Yes, you can still file for bankruptcy even if your only income is from social assistance.

Note: While specific search volume data is not provided here, these questions reflect common concerns and queries related to bankruptcy and social assistance based on general trends and expert knowledge in the field.

References

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