Bankruptcy is a legal process regulated by the Bankruptcy and Insolvency Act. Through a bankruptcy, you may be released of all or most of your debts. The purpose of the Act is to permit the honest, but unfortunate, debtor to be released from debt and have a fresh start. As part of the process, you may have non-exempt assets that will be sold, and payments to make based on your income level. These are paid to your Trustee for your creditors.