Bankruptcy may be the best option should the solutions mentioned above prove insuffcient and financial difficulties become impossible to overcome. Bankruptcy is an official procedure governed by the Bankruptcy and Insolvency Act of Canada, in which you will have to disclose all your assets, except those exempt by law, to the trustee who will sell them to repay your creditors. Bankruptcy is a procedure that is managed by a trustee. The duration of a bankruptcy and the amounts of the monthly payments due, based on your income, are stipulated by law. By law the debtor, or bankruptee, must attend two (2) financial consulting sessions to help you understand the causes of your bankruptcy and to assist you in managing your financial affairs in the future. These sessions are mandatory in order to be eligible for automatic discharge from bankruptcy. Once you have filed for bankruptcy, proceedings initiated by unsecured creditors, such a wage garnishments, will cease. A detailed analysis of your financial situation made by an insolvency professional, will allow you to get a clear picture of every option available to you.