In Edmonton & Northern Alberta
What Is Bankruptcy?
Bankruptcy is a legal process, provided and regulated by the federal government, to help citizens and permanent residents overcome unmanageable debt and have a fresh start. Filing for bankruptcy can only be done by a Licensed Insolvency Trustee and must follow the procedures outlined in the Bankruptcy & Insolvency Act of Canada. Through bankruptcy you can be discharged from your unsecured debts, meaning that your debts are eliminated and can no longer be enforced by your creditors.
When Should I Consider Filing For Bankruptcy?
The bankruptcy process is designed as a last resort for individuals and families who are in a position where they cannot afford to deal with their debt in any other fashion. Here are the top signs you should be discussing your finances with a bankruptcy trustee:
- Avoid answering the phone afraid of harassing creditors
- Paying minimum payments on credit cards
- Owe CRA back taxes for multiple years
- Wages garnished for unpaid bills
- Turned down multiple times for extended credit
- Use one credit card to pay another
- Repeatedly use cash advance or payday loans
- Skip payments or are behind on accounts
Are There Any Alternatives to Bankruptcy?
At Goth & Company, we believe it is important for everyone to understand that there are more options than just bankruptcy in Edmonton, and declaring bankruptcy may not be the best solution for your situation. To help ensure everyone is aware of what the options are, we provide a free initial consultation meeting with a Licensed Insolvency Trustee. The Trustee will examine your financial position and outline all the options that exist including:
- various debt consolidation loans
- debt management plans
- the Orderly Payment of Debts program
- filing a consumer proposal
- declaring bankruptcy
Find out if declaring bankruptcy is right for you!
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Recent Posts About Bankruptcy
We continually publish new content based on questions and feedback from our clients and visitors.
A Consumer Proposal or Personal Bankruptcy Will Clear Up My Credit Report Myth or Fact? Several times a week I get calls from individuals (debtors) who believe that if they go through a consumer proposal or personal bankruptcy their debts will be removed from their...
How Much Will I Have To Pay If I Go Bankrupt? First We Evaluate Your Options With You When you meet with a Licensed Insolvency Trustee (LIT) to review your situation and your options, the bankruptcy process results in the least amount you pay and is usually the...
Do I Have To Disclose All Debts In A Consumer Proposal Or Bankruptcy? Why It Matters When a consumer proposal or bankruptcy starts there is immediate protection from the collection action of all unsecured creditors against the debtor. To get this protection, certain...
Bankruptcy Is Not Just "Bankruptcy" What is it Then? Bankruptcy is commonly used to describe one of the government law processes available in federal legislation known as the Bankruptcy and Insolvency Act (BIA). The BIA regulates the options available to deal with...
Frequently Asked Questions
Below are commonly asked questions about bankruptcy in Edmonton and in Alberta.
Who is Eligible to File for Bankruptcy in Edmonton/Alberta?
In Edmonton and Alberta, to be eligible to file for bankruptcy, you must:
- Owe at least $1,000; and
- Not be able to make your regular payments as they become due; or
- Not be able to pay all of your debts if all your non-exempt property was sold.
How Much Does it Cost to File for Bankruptcy in Edmonton/Alberta?
There is a cost to file a bankruptcy that is regulated by the Office of the Superintendent of Bankruptcy. The cost is dependent on the following factors: Income, Family Size, and Assets you own.
For more information on the cost, you are best to contact Goth & Company Inc. directly and we can explain how the cost is determined in much greater detail.
Does the Filing of Bankruptcy Clear Me From All of My Debts?
While filing for bankruptcy will clear you from most of your debts, are a few exceptions. These exceptions include:
- Secured creditors (eg. mortgage or car loan)
- Court fines and penalties (including traffic violations)
- Debts obtained by fraud or misrepresentation
- Civil lawsuits involving intentional bodily harm, sexual assault or wrongful death
- Student loans, if you have taken any classes in the 7 years prior to filing
Can My Creditors Continue to Harass me After I File for Bankruptcy?
No, upon the filing of a bankruptcy there is an automatic stay of proceedings. This is a legal procedure that revokes any of your unsecured creditors’ collection rights. If they call you, don’t panic. Just explain that a bankruptcy has been filed, and give them our name and phone number.