Bankruptcy is the final option for insolvency, intended to allow someone financially under water to be discharged from most of their debts.   Like a consumer proposal, a bankruptcy is managed through a licensed trustee, who files the bankruptcy on your behalf and manages your assets held in trust. The trustee will then liquidate​ ​your qualifying assets (including tax refunds, stock investments, vehicles or home equity) and distribute the agreed amounts to your creditors.   Once you have been declared bankrupt, payments to any unsecured creditors will cease. If you’re under threat of legal action over debt, or having your wages garnished, those activities will also stop.