How you become bankrupt
Applying for bankruptcy (debtor’s application)
If you owe more than $1,000, you can apply for bankruptcy. This is called a debtor’s application.
Made bankrupt by the court (creditor’s application)
If you owe someone $1,000 or more, they can apply to the court to make you bankrupt. This is called a creditor’s application.
There are 2 main ways you can become bankrupt – you can apply for bankruptcy for yourself (debtor’s application), or the court may make you bankrupt (creditor’s application).
Bankruptcy is a last resort if you are facing large debt. It will clear your unsecured debt, but it will also significantly impact your life and limit your access to some services.