A condition is not the same as a filing
Section 2 of the Bankruptcy and Insolvency Act defines an insolvent person using specific requirements and financial tests. Bankruptcy involves a formal legal status and process. A missed payment, a poor score or a calculator result is not a complete application of the statutory definition. Get an assessment rather than diagnosing your legal position from one symptom.
| Term | What it refers to |
|---|---|
| Financial difficulty | The practical problem you are experiencing |
| Insolvency | A condition subject to legal definitions and tests |
| Bankruptcy | A formal process and legal status |
| Enquiry | A request for information or contact, not a filing |
An assessment should discuss alternatives
The OSB explains that LITs help people understand options and administer formal insolvency proceedings. Ask why a particular route fits and what the alternatives would require. A consumer proposal, creditor arrangement or repayment plan is not simply bankruptcy under another name. You should understand the actual process being recommended.
Prepare facts rather than a label
Instead of starting with “I think I am bankrupt,” explain what changed: income fell, interest rose, payments were missed or an account entered collection. Bring a complete picture of debts, assets and income through the professional’s secure process. This gives the assessor evidence to work with rather than a conclusion they must first unpack.
Keep urgent matters separate from general research
If you have court papers or a collection deadline, tell the appropriate professional immediately. Reading this guide or requesting a callback does not pause a deadline. Do not rely on this website for urgent assistance or assume that a future filing would address every debt or legal issue in the same way.
Prepare for a conversation
- What changed in your ability to pay.
- Every debt and whether someone else is liable.
- A complete asset and income picture.
- Any dated legal or collection notice.
You do not need account numbers, a SIN, banking credentials or uploaded documents to start our enquiry.
Does talking to a trustee put me into bankruptcy?
No. A discussion is different from entering a formal proceeding. Ask the LIT to explain the specific documents, decisions and filing steps before you agree to an option.