Personal Bankruptcy Protection in Edmonton & Central/Northern Alberta

Bankruptcy Protection may seem scary and embarrassing to those who are facing deep financial pressures to repay unresolved debts. At A.C. Waring & Associates Inc., we can help you unravel your situation, examine alternatives, point out available options and advise you of your possible solutions. Should Bankruptcy Protection be the best solution for you, here are some frequently asked questions and answers.

Is it True That not Everyone Can Qualify for Bankruptcy?

Bankruptcy is one option for those who are unable to repay their debts as they come due. The factors determining whether bankruptcy is the best option include your income and assets. Depending on the size of your family, you are allowed to earn a certain amount of income per month, set by the federal government. Also, you are allowed to keep a certain amount of equity in assets like your home, vehicle, household goods and furniture, tools, RRSPs, farming equipment and certain excess income. If you earn too much or have too much equity in your home or other assets, you may have to pay more and/or extend the time you spend in bankruptcy repaying your creditors. In this situation, we recommend filing a Consumer Proposal.

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If I Choose Bankruptcy, Will My Job Be Affected?

Bankruptcy can affect your ability to work in certain jobs or industries especially if you are licensed or bonded. Your Trustee will talk to you about other alternatives that may be open to you.

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If I Choose Bankruptcy, How Will My Credit Report At Equifax And Trans Union Be Affected?

Any negative situation with creditors can affect your credit rating. Often credit ratings are already at their lowest before people seek debt relief. Credit worthiness is based on your creditors’ experience with you in your past irrespective of bankruptcy. Having a credit card delinquent for 120 or more days could terminate your ability to get credit from anyone else. The majority of people going bankrupt already have derogatory information in the Credit Bureau. Any derogatory information on your Credit Bureau, by provincial regulation, remains in place at the Credit Bureau for 6 years even if you pay the debt off.

A first bankruptcy remains on your record at Equifax and Trans Union for 6 years from the date of your discharge. A second bankruptcy remains on your record for 14 years from the date of your last discharge.

 

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How Long Can I Expect to Be in Bankruptcy?

Nine months is the minimum length of time most individuals go through to be eligible for a discharge of bankruptcy. Bankruptcy can be extended beyond nine months if the court orders an extension. Those with incomes significantly over the income guidelines will be in bankruptcy for 21 months. Other factors may include whether or not this is not your first bankruptcy, or if you have failed to complete one or more of your duties in bankruptcy, and/or if your discharge is opposed by a creditor, Trustee or the Superintendent of Bankruptcy, which occurs occasionally.

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If I Choose Bankruptcy, How Do I Start Filing?

Call us. Once you have discussed all your options and have decided to file for Bankruptcy, we can prepare your information for the process. Create a list of your income, assets, current and past debts, and transfers of funds or property as you will need to file a sworn financial statement. Keep your house and car loan payments current if you intend to maintain these assets after filing for bankruptcy. If you intend to keep your condo or home, it is a mistake to let condo fees or mortgage payments fall into arrears.

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