My husband and I are on Employment and income assistance, can we apply for bankruptcy?

Yes it is possible that you may be able to file for bankruptcy.  I would suggest that you contact a Trustee in your area for an assessment of your situation.  Normally there is no cost for the assessment and they will be able to determine whether or not bankruptcy is the best solution available to you.

If your concern is the cost of filing for bankruptcy and your ability to pay the Trustee's fee, you can also contact the Office of the Superintendent of Bankruptcy (Industry Canada) for information about their Bankruptcy Assistance Program for individuals with low income.  Note that this program is intended to help you find a Trustee willing to take on your file, it is not a government program that pays or subsidizes the related costs.

Also keep in mind that if you have a vehicle and do not work, you are not eligible for an equity exemption and as such your vehicle would likely be sold by the Trustee, given your inability to buy back the equity in a monthly payment.