Filing Personal Bankruptcy for Medical Bills in Canada

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Yes, you can file for personal bankruptcy in Canada to handle medical bills and other unsecured debts. Medical expenses are considered unsecured debts and can be tackled through a personal bankruptcy or consumer proposal. While this can give you a fresh start, it will affect your credit rating and assets, depending on local laws.

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Question

Can I file bankruptcy for my medical bills? I want to know if I can declare bankruptcy to help me manage my medical expenses.

From: Anonymous, Ontario (ON)

Answer

Yes, you can file for bankruptcy in Canada to manage your medical bills and other unsecured debts. Medical expenses fall under unsecured debts, so they can be included in a personal bankruptcy or consumer proposal. By declaring bankruptcy, you can wipe out or greatly reduce your medical bills, giving you a fresh start to rebuild your financial health. However, keep in mind that this step will affect your credit rating and could impact your assets, depending on the exemption laws in your province.

From: Insider Scott

OSB Based Answer

A person can file for bankruptcy to help manage your medical bills in Canada. Under the Bankruptcy and Insolvency Act, any individual who is unable to pay their debts as they come due may apply for bankruptcy, which includes debts incurred from medical expenses. This is supported by Section 2 of the Bankruptcy and Insolvency Act, which defines a bankrupt as an individual who has committed an “act of bankruptcy” due to their inability to pay debts, including those related to medical care.

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

References

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