Do I go to jail if I file for bankruptcy? No, just because you’re in debt and have been forced to file an assignment in bankruptcy you do not have to go to jail Jail is very rare in bankruptcy and would only result from serious violations of your duties under the Bankruptcy and Insolvency Act If you committed fraud or gross misrepresentation on credit applications in the past you should discuss this with your trustee Before you sign the papers to file your assignment in bankruptcy