The appropriate filing venue or “locality” for an individual seeking protection under the Bankruptcy and Insolvency Act, is based on three factors:
- Where the individual has carried on business (if applicable), during the year immediately prior to the contemplated filing,
- Where the individual lived during the year immediately prior to the contemplated filing,
- Where the majority of the individual’s property is located.
Practically speaking, individuals primarily file for protection in the city or town where they currently reside, and where the majority of their property is also located (i.e. bank account, vehicle, and home). It is usually not important where a person has accumulated debt.
In situations where an individual relocates out of province for several months at a time for work (for instance, taking a contract in the Alberta to work in the oil sands), filing for protection outside of the province that s/he does not treat as a primary residence may not be appropriate.