Declaring Bankruptcy In Alberta
Who Can File for Bankruptcy in Alberta?
If you are considering filing a personal bankruptcy in Alberta, make sure you meet the following criteria. You must:
- be over 18 years old
- be a permanent resident of Canada
- have more than $1,000 of unsecured debt
- be unable to pay what you owe
These are the basic qualifications, but they do not mean that bankruptcy is automatically the best solution for you. This is where we come in.
Personal Bankruptcy Must Be Filed by a Licensed Insolvency Trustee (LIT)
Licensed Insolvency Trustees are the only professionals in Canada that can file and administer bankruptcies. It is not something that you can do on your own, or through a lawyer. This means that you will need to find a Licensed Insolvency Trustee, in Alberta, that you are comfortable with.
We offer a free, no obligation consultation as an opportunity for you to meet with us and learn ALL of the options that are available to you. We want you to have all the information you need to make a decision that will work for you. We take a personal approach to make sure you are comfortable with the team that will be taking care of you.
Why Would I File for Bankruptcy in Alberta?
Personal bankruptcy is often a last resort when there are no other options available. It is important to make sure you understand all your options before moving forward. Here are some common reasons to meet with a Licensed Insolvency Trustee:
- You are unable to pay your debts on time (or at all).
- You have income tax debt to the CRA that you cannot pay.
- Your creditors are threatening to take legal action to recover what is owed.
- Collection agencies are calling you and sending you demand letters.
- Your wages are being garnished.
- Creditors have a court-order allowing them to seize your assets.
- You are dealing with student loans that you are unable to repay (and it has been more than 7 years since you completed your studies).
What Happens When I File for Bankruptcy in Alberta?
Once you file for bankruptcy, there is a “stay of proceedings” that prohibits creditors from initiating or continuing any action against you to recover what was owed. Creditors and collection agencies will no longer be able to contact you and must deal with the Trustee throughout the process.
You will be required to submit monthly income reports to the Trustee and make monthly payments until the term of your bankruptcy is complete. You will also be required to attend two credit counselling sessions. We have a detailed article that explains what happens before, during and after declaring bankruptcy:
We will also explain the process in more detail (based on your unique circumstances) during the initial consultation meeting and make sure that all your questions are answered.
When Should I Meet with A LIT?
If you are dealing with any of the situations described above, then there is no reason to wait. The consultation meeting is private and confidential, and there are no obligations once you leave. You can choose how and when you want to move forward with filing a personal bankruptcy or alternative solution.
One thing we hear regularly is people wishing they would have come in sooner. Finding out what options are available and knowing how you will be impacted can be like a breath of fresh air in an otherwise stressful situation. We try to be as helpful as possible with all of our online resources, but the best way to get answers for your specific situation will be to meet with us directly. Our caring team is on standby ready to help.
Where Do I Have to Go to File for Bankruptcy in Alberta?
We have offices throughout Calgary and Southern Alberta, but the entire process can also be done remotely through phone calls, email and video conferencing. We are happy to meet with you in person, but you may be more comfortable staying home. Initial consultations can be done over the phone or video conference call at your convenience and we have office hours to accommodate most schedules. Let us know what works best.
Things to Know About Bankruptcy In Alberta
Alberta bankruptcy laws change over time, and every bankruptcy in Alberta is different. At Hudson and Company we can help you figure out whether filing for bankruptcy is your best option, and how to go about the process.
As you consider whether to file for bankruptcy in Alberta, here are some things to keep in mind:
Filing for Bankruptcy in Alberta Does Not Mean You Are Irresponsible. We meet men and women every day who have been responsible but have fallen on hard times. Filing for bankruptcy in Canada is often a sign that you are ready to move forward with your life, and better one’s self financially.
Filing for Bankruptcy in Alberta Does Not Mean You Have to Lose Your Home or Job. Under Canadian bankruptcy law, many your personal assets – including your home – are often protected from creditors.
Alberta Bankruptcy Proceedings Take Time. This can range from nine months to three years, depending on your financial situation and personal history.
When Filing for Bankruptcy in Alberta a Review of Your Finances is Necessary. The first step towards determining whether you are eligible for bankruptcy protection in Canada is reviewing your assets, income, and outstanding debts. At Hudson, we will help you to find the best option so you can once again become financially stable.
When Thinking about Bankruptcy in Alberta? There May be Alternatives: Not every person who consults with Hudson ends up having to file for bankruptcy in Canada. Often, we can find creative, low-cost solutions that work for both you and your creditors and avoid further damage to your credit rating.
Want to know more? At Hudson and Company, we have a highly qualified team of Alberta insolvency advisers and trustees who can help you find the best way forward. Call us today at 403-265-HELP (4357) to schedule a consultation with one of our team members. We will help you determine whether filing for bankruptcy in Calgary is the right move for you.