Google Translate Disclaimer

A number of pages on the Government of Saskatchewan's website have been professionally translated in French. These translations are identified by a yellow box in the right or left rail that resembles the link below. The home page for French-language content on this site can be found at:

Renseignements en Français

Where an official translation is not available, Google™ Translate can be used. Google™ Translate is a free online language translation service that can translate text and web pages into different languages. Translations are made available to increase access to Government of Saskatchewan content for populations whose first language is not English.

Software-based translations do not approach the fluency of a native speaker or possess the skill of a professional translator. The translation should not be considered exact, and may include incorrect or offensive language. The Government of Saskatchewan does not warrant the accuracy, reliability or timeliness of any information translated by this system. Some files or items cannot be translated, including graphs, photos and other file formats such as portable document formats (PDFs).

Any person or entities that rely on information obtained from the system does so at his or her own risk. Government of Saskatchewan is not responsible for any damage or issues that may possibly result from using translated website content. If you have any questions about Google™ Translate, please visit: Google™ Translate FAQs.

About Bankruptcy and Your Options


What is bankruptcy?

Bankruptcy is a process for when a person in debt (debtor) can't afford to deal with their unsecured debt. Unsecured debt generally refers to a financial loan by a lender to a debtor that is not secured by collateral.

Credit card debts and student loan debts are examples of unsecured debt where the lender has no immediate right to seize specific items of a debtor's property, if the debtor defaults on the debt. That does not mean that a lender has no legal recourse against the debtor. It means that a debtor has more legal protections when it comes to his or her home, vehicle.

By contrast, mortgages and car loans are mostly secured debts. These debts typically do not carry the same interest rates as credit cards. If the debtor defaults, then the creditor has security and can seize the home or car that secures the debt. A debtor's secured debts are not discharged in the bankruptcy process.

Bankruptcy gives people who owe money (debtors) and those they owe money to (creditors) a way to resolve debts. Depending on the type of debts, the bankruptcy process may allow a debtor to become more financially stable. This will allow them to contribute to the support of their family and society. Bankruptcy is a last resort. It is a legal process that:

  • Stops creditors from collecting unsecured debts if a person does not have the resources to make payments; and
  • Gives honest debtors a way out of having to pay unsecured debts they cannot afford.

If a debtor is not responsible for their financial situation:

  • Creditors will probably receive less than 100% on the dollar of loans; and
  • Creditors will no longer have a way, other than the bankruptcy administration, to collect unpaid debts from that person.

Are there debts that cannot be dealt with in the bankruptcy process?

Bankruptcy is only available for the discharge of unsecured debts. This means that debts secured on property will not be affected by the bankruptcy discharge. Examples include:

  • a mortgage; and
  • a loan for the purchase of equipment or a vehicle.

You will still have to pay these debts if you wish to keep your house or vehicle. Bankruptcy may not provide a solution to your debt problems if:

  • the bankruptcy trustee or a court determines that your debts arise from misconduct, such as fraud.
  • the trustee or a court conclude that you can afford to pay your debts but have structured your financial affairs to avoid having to pay your debts.

A bankruptcy trustee is a licensed professional who is trained to assist people who are unable to pay their debts.

I'm having money problems and am contemplating bankruptcy. Do I have other options?

There are different options available to you if you are having money problems. You may be able to negotiate an arrangement with your creditors called a proposal. These arrangements can include:

  • Paying less to your creditors;
  • Paying back your unsecured debts over a longer period of time.

These options can be explored with a bankruptcy trustee. A bankruptcy trustee is a licensed professional who is trained to assist people who are unable to pay their debts. Find a bankruptcy trustee by searching the registry of the Office of the Superintendent of Bankruptcy.

We need your feedback to improve Help us improve