Do I Qualify For Bankruptcy? To qualify you must:
Will I Lose Everything? No. The Bankruptcy & Insolvency Act and the Alberta Civil Enforcement Act exempt certain assets from seizure:
How much does it cost to claim bankruptcy? The cost of administrating a bankruptcy depends on a variety of factors, including the complexity of the bankrupt’s affairs. The Superintendent of Bankruptcy regulates the fees charged by Trustees. We can tailor your fee payment schedule to meet your individual situation. What Happens To My Debts? Most collection actions, lawsuits & wage garnishees are suspended upon filing bankruptcy. Your creditors will be advised to stop contacting you and to deal directly with your Trustee. In many cases, upon your discharge from bankruptcy, you are released from all your debts. Do Any Debts Survive Bankruptcy? Yes. Certain debts are not eliminated with your discharge from bankruptcy. For example:
In most cases, bankruptcy does not prevent a secured creditor such as a Bank, Credit Union or Finance Company from realizing on any assets which have been pledged as security for a loan. House mortgages are unaffected if monthly payments are current. Cars or other chattels pledged to a financial institution can be repossessed at the option of the secured creditor, even if your payments are current. Do I Have To List All My Debts? Yes. Bankruptcy cannot be applied selectively. You are required to list all your debts, regardless of the source, even those owing to friends & relatives. If you intentionally fail to disclose debts, you will be liable for the dividend otherwise payable to that creditor.
Will I Have To Make Payments To My Creditors? When you declare bankruptcy, one of your duties as a bankrupt will be to prepare and submit to the Trustee, a monthly budget detailing your income & expenses. The Superintendent of Bankruptcy provides a series of income thresholds above which you will be required to make payments to the Trustee for the benefit of your creditors. The income thresholds are determined primarily by the number of persons in your family. How Are Loan Co-Signers Affected By My Bankruptcy? Someone who has co-signed a loan for you will still be responsible for the loan after you go bankrupt, and will usually be required to pay that debt in your place. What Happens To My Credit Rating? Most people who we talk to about bankruptcy already have a poor credit rating. Many people are already registered at the Credit Bureau, are unable to obtain a loan, or have had their credit cards suspended. Your credit rating can only improve following your discharge from bankruptcy. How Long Will I Be Bankrupt? An individual who has not been bankrupt before will normally be discharged nine months after bankruptcy. The discharge will be automatic unless the bankrupt does not live up to his obligations or fails to perform the duties imposed upon him by the Bankruptcy & Insolvency Act. The bankrupt’s discharge can be denied for non-payment of Trustee fees or a creditor can object to the bankrupt’s discharge, depending on the circumstances surrounding the origin of the debt. Second time or subsequent bankrupts are not eligible for an automatic discharge and the Trustee must apply to Court to obtain their discharge. Who Will Know About My Bankruptcy? Once you have made an Assignment in Bankruptcy, the Trustee is required to notify all of your creditors. In addition, information regarding your bankruptcy will be kept on file by credit reporting agencies, the Courts, Canada Customs & Revenue Agency and the Superintendent of Bankruptcy. |
