An individual may become insolvent for a variety of reasons. For many people, it may be a matter of over use of credit cards or other credit facilities.

Subject to the provisions of the Bankruptcy and Insolvency Act (BIA), one or more unsecured creditors of a debtor may apply to the court for a bankruptcy order in respect of the debtor.

Two major pieces of legislation govern insolvency and bankruptcy in Canada – the Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors Arrangement Act (CCAA).