“Personal bankruptcy”. Such an ominous sounding words! First a brief history lesson – where does the word “bankruptcy” come from? It’s said that the word bankruptcy derived from two Latin words: bancus, which means table or bench, and ruptus, which means karacto.xyz medieval Italy, merchants would set up their businesses either on tables or benches in the market so that shoppers. How Does Bankruptcy Work? Both you and your trustee have several duties and responsibilities.. What happens during a bankruptcy? Once the paperwork is signed, the trustee will electronically transmit your bankruptcy information to the Office of the Superintendent of Bankruptcy in Ottawa (a division of the federal government). How Bankruptcy Works in Canada How Does Filing Bankruptcy Work? The main purpose of Canadian bankruptcy law is to give a person the chance to get a fresh start by eliminating their overwhelming debt that they have no hope of repaying. Most people who file bankruptcy keep all their assets and are out of bankruptcy in nine months.".