Question: I currently have no form of income, I have creditors breathing down my neck for money that I cannot possibly give to them! How would bankruptcy work for someone with no income?
Thank you
Answer: The main reason most people file bankruptcy in Ontario is to prevent their creditors from garnisheeing their wages. If you have no income, then you have no wages for them to garnishee. If you have no assets, there is nothing for the creditors to seize, so could simply do nothing. The creditors may continue to harass you, but if there is nothing for them to get, legally there is nothing they can do until you return to work.
Alternatively, you could go bankrupt, but bankruptcy costs money. Trustees in Ontario charge a minimum contribution each month, plus you lose your tax refund and GST credits while bankrupt. If you have no income, it may make more sense to wait until you have an income to go bankrupt.
However, if you don’t want to deal with the phone calls from creditors, and you have a way to pay for the cost of the bankruptcy, that is also an option.