When you declare bankruptcy, the equity in your non-exempt assets may be liquidated or realized on by the Trustee, and used to repay the money that you owe your creditors. The process is simple: any assets of value that you own when you file will be used to pay towards your debts, and your debt will be forgiven.
The common items that you may lose when declaring bankruptcy include the following:
An inheritance
Valuable artwork
Stocks, bonds, and investments
Tax refunds for the year of bankruptcy, and any years prior that you haven’t yet received
Equity in your home above your provincial exemption