Bankruptcy is a legal process in which you surrender certain of your assets to a Licensed Trustee in Bankruptcy for disposition and distribution of the proceeds to our creditors in exchange for financial relief and forgiveness of most, if not all, of your debts and obligations. A bankruptcy is intended to provide an honest but unfortunate debtor with relief from overly burdensome or pressing debt, give them a fresh start, and stops creditors from being able to take collection or legal action against you.
A bankruptcy process provides for the retention of some assets by a bankrupt, with the assets you are able to keep being described as exempt assets. The framework in the Bankruptcy and Insolvency Act allows for the equitable and fair treatment for not only the bankrupt but the creditors and a fair split of non-exempt assets amongst a bankrupt’s creditors.
When a person goes bankrupt, the process is referred to as the filing of an “assignment in bankruptcy” and the individual filing an assignment in bankruptcy is referred to as “the bankrupt”.
BASIC STEPS IN FILING A BANKRUPTCY
The steps involved in a bankruptcy include filing the assignment in bankruptcy, serving notice of your bankruptcy to your creditors, realizing on or settling on the non-exempt assets, the filing of tax returns, two financial counselling sessions, the sharing of a portion of your income while bankrupt and, if everything goes well, forgiveness of your bills and a discharge from bankruptcy.
HOW CAN I FIND OUT MORE?
If you are considering bankruptcy this website and the pages contained herein will provide you with further details and may address many of the questions you may have.
Our website offers a series of options for our readers including an ability to review the most commonly asked questions we receive, an ability to post an anonymous question to our Bankruptcy Alberta Blog, and the ability to e-mail or contact an Alberta Bankruptcy Trustee in your local area to ask a question or receive some personal advice free of charge.
Taking the first step and making the first contact with a Bankruptcy Trustee is always the hardest. Our goal is to provide friendly, helpful and conscientious service and offer clear explanations and practical solutions for Albertans in need of financial help.
Our initial consultations are free of charge, and you are under no obligation. Once people make a decision to file bankruptcy, it is pretty common for us to hear, “We wish we had contacted you sooner,” or “We wish we had come to see you sooner.”
We encourage you to feel free to contact us and explore the debt relief options available to you.
