The Bankruptcy Process - How Bankruptcies Work in Canada
Many people facing financial challenges think of bankruptcy as an ending, but from our 20 years of experience we know that for numerous people burdened with undefeatable debt, it is the beginning to a new life. Learning how bankruptcies work in Canada can help you to make the right choice.
What Does Declaring Bankruptcy Mean?
Bankruptcy provides immediate protection from creditors actions. This is called a “stay of proceedings”, stopping collection agency calls, creditor calls, and will stop wage garnishments. Even the Canada Revenue Agency is stayed by this filing.
Bankruptcy is a legal process in Canada that will eliminate most of the debts that most people carry. The legislation that governs the bankruptcy process is called the Bankruptcy and Insolvency Act. All Alberta bankruptcies in Canada must be filed with a Licensed Insolvency Trustee (formerly called Alberta Trustees in Bankruptcy).
Do I Lose My House in a Alberta Bankruptcy?
Most Albertans are able to keep their house in a bankruptcy. In Alberta $40,000 of equity per title remains with a bankrupt debtor.
As your Alberta Licensed Insolvency Trustee, we will work with you to determine your options and guide you with your decision on retaining your home.
How Long Does Bankruptcy Take?
There are many factors to bankruptcy. How long the process many take will depend on your individual circumstance.
How are RRSPs treated in a Personal Alberta Bankruptcy?
Do I Lose My Car?
There is a $5,000 equity exemption for a motor vehicle in Alberta. If the value of the vehicle is over this exempt amount we can make arrangements for this amount to be re-paid to the estate for your creditors.
Often, if it fits into your budget, bankrupt individuals will choose to keep paying lease payments throughout their bankruptcy. Other times, a bankruptcy can be used to get out of unfavourable lease situations. We help with this analysis and walk you through this process.
What is the first step to bankruptcy protection?
Bankruptcy in Alberta, can only be filed through a Alberta Licensed Insolvency Trustee. This is how you file for bankruptcy in Alberta:
- Contact us at The Fryzuk Group Inc to book a free consultation;
- Gather a list of all the people you owe money to. We will provide you with a simple list of information required. Our easy to complete information form is available upon request by email or paper copy.
- Meet with one of our Alberta trustees for a confidential consultation to discuss your situation;
- Ask about costs of claiming bankruptcy, duties and alternatives;
- Allow the trustee and our friendly staff to guide you to becoming debt free
Prefer a chat? Call Us at 403-561-8228 right now and get personalized answers about Bankruptcy.