Individuals with assets and debts on both sides of the border are a special case. If they face possible bankruptcy, they should seek professional help in the country where their situation is desperate.

However, if they have major assets in the other country, their bankruptcy attorney or trustee is likely to hold up the bankruptcy until those assets are liquidated.  Bankruptcy in either country does not wipe out debts in the other country.

Bankruptcy laws in Canada differ from those in the U.S., so it is important for consumers in Canada to get information and advice that are valid in the Canadian system.

• The professionals who handle bankruptcy cases are known as bankruptcy trustees, and are not lawyers but chartered accountants, the Canadian equivalent of CPAs.
• Canadian bankruptcy trustees are permitted to provide credit counseling, although they commonly refer clients to non-profit credit counseling agencies.
• In Canada, personal "bankruptcy" is most similar to the American chapter 7 bankruptcy.
• The nearest Canadian equivalent to a chapter 13 bankruptcy is a "consumer proposal", a legally binding repayment arrangement between unsecured creditors and the consumer.

On the other hand, there are many similarities in Canada:

• Canadians have many of the same reasons as Americans for facing financial difficulty,  including unforeseen major expenses, loss of employment, and excessive credit card debt
• Canadians can use the same initial solutions, such as debt consolidation and better personal financial management through credit counseling.
• Just as there are state and local differences in the application of American bankruptcy laws, there are provincial differences in Canada.

Bankruptcy Canada provides extensive information on bankruptcy and its alternatives in Canada. Those who don't readily find the answers they need can submit anonymous questions to the site's blog. The site is owned and advised by bankruptcy trustees, so that consumers can trust its accuracy and reliability.