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FAQs: Personal Bankruptcy

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Personal Bankruptcy Protection in Edmonton & Central/Northern Alberta

Bankruptcy protection may seem scary and embarrassing to those facing deep financial pressures to repay unresolved debts. At A.C. Waring & Associates, we can help you unravel your situation, examine alternatives, point out available options and advise you of your possible solutions. 

Should bankruptcy be the best solution for you, here are some frequently asked questions and answers.

If I Choose Bankruptcy, Will I Get Rid of All of My Debts?

There are some debts that you are responsible for despite bankruptcy, including, but not limited to, secured debt (only if the asset is kept), child and spousal support payments and arrears, student loans less than 7 years from the last day of attendance, court-ordered fines, and debts from fraudulent activities.

The first step in obtaining assistance is to make contact. As professionals in the field, we can provide you with the best source of information about your options. We handle debt stress situations daily. Each case is evaluated individually, whether this is for debt repayment planning, credit counselling, discussions about orderly payment of debt, consumer or business proposals, or bankruptcy protection.

Once the problem has been determined, we can assess your options and discuss applicable solutions. Call for an appointment or drop in and see us. Visit us at First Edmonton Place in downtown Edmonton or call us for a free consultation. After hours, please leave your message.

A.C. Waring & Associates offers a free consultation, whether over the phone or in person. You can call us at 1-800-463-3328 from anywhere in Alberta or 780-424-9944 within the Edmonton region.

We understand that taking a step in contacting us may be very difficult to do. We are here to help and will advise you to the best of our ability. If you cannot visit us due to hospitalization, hospice, or long‑term care, incarceration, or other unique circumstances, we may certainly endeavour to arrange personal consultations at your site.

You need sound financial advice if you are overwhelmed and stressed about your personal or business financial situation.

Are you unable to pay what you owe, living off of loans, credit cards or personal lines of credit, while your debt continues to increase? Are you incurring or worried about wage garnishees, payment demands, and foreclosure or utility cutoffs due to unpaid bills? These are all present or potential stressors that may demonstrate financial danger signals in your life.

Regardless of how the debt was incurred, the reality is, you cannot repay the spiralling debt load.

Are you overwhelmed, embarrassed, stressed out, frequently angry, or feeling down about your debt? Are you experiencing:

  • Difficulty sleeping, anxiety, poor eating habits, or depression?
  • Anger and/or anxiety over not knowing what to do or whom to ask for the “right” advice?
  • Fear of “losing” it all, “hiding” debts, or avoiding others?

Many individuals struggle with repaying their debts. At A.C. Waring & Associates, we realize some conditions may be beyond your control and can lead you deeper into debt. These circumstances might include:

  • Losing a job, marital separation, divorce, becoming ill, gambling, needing costly medications not covered by benefits, natural disasters not covered by insurance, and investment losses.
  • Marriage to a spouse already carrying debt overload and/or living with large wedding expense obligations
  • Shopping addictions: sometimes, needs and wants get blurred when we feel we “have to have it”
  • Co-signing a loan for a friend or relative who is not financially stable and you wind up having to pay for the loan
  • Making minimum credit card payments instead of paying full amounts each month

Other times, a combination of internal and external circumstances creates monetary challenges. For example, buying a home with a large mortgage, expecting a baby, buying a new car, or failed investments can all lead to increased debt. Many people also have financial dependents to care for, such as children, a spouse, or elderly parents who have financial difficulty. We understand these things happen.

When it comes to getting debt help, it does not matter whether a situation beyond your control brought you into financial hardship or if your problems arose from how your finances were handled. The professionals at A.C. Waring & Associates can talk to you about the available alternatives and suggest various solutions that work for you.

Financial hardship can come at any time. Most people turn to a trustee when:

  • Creditors call their loans in
  • Credit card companies no longer allow more credit
  • Utility companies threaten cable, hydro, or gas discontinuation
  • Businesses cannot meet payroll or operational payments

A Licensed Insolvency Trustee takes the burden away from you. No more creditor calls, collection notices, foreclosure notices, repossessions, or debt-collection suits. Once bankruptcy is formally filed, the trustee will contact your creditors and collection agency calls to your home should stop.

We are federally licensed and can act on your behalf to derive the best financial solution for your circumstances. We will review your entire financial situation and help you understand what options are available. As professionals in debt management, we can help you obtain immediate financial direction, counselling, and situation-changing debt decisions. Everything we do is regulated through the Bankruptcy and Insolvency Act.

You are not alone in your financial predicament, and our consultation is strictly confidential. More people than you think are, or have been, in a financial crisis. We have served thousands of debtors over the years, and our staff is highly sensitive to the difficult challenges faced by those in need every day.

The risk of not obtaining professional help may include foreclosure, lawsuits, or a formal garnishee of wages by creditors. The other risk of not getting professional help to solve your indebtedness includes running out of money, even if you are working 3 jobs. Get professional assistance now.

Costs are federally regulated. They are individual to each situation, including family size, assets, and income. Also, if you have surplus income while bankrupt, you may be required to make some additional monthly payments toward your debt.

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.

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.

Any negative situation with creditors can affect your credit rating. Often credit ratings are already at their lowest before people seek debt relief. Creditworthiness 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 TransUnion 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.

For most individuals, 9 months is the minimum length of time to be eligible for a discharge of bankruptcy. Bankruptcy can be extended beyond 9 months if the court orders an extension. Those with income 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, 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.

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.

Debt Repayment Plans

These are plans sculpted between you and your credit counsellor. They are arrangements to repay debt based on what you can afford and to advise you of other applicable options. Typically, this decision is made in the beginning stages of debt management to help you get your finances on track.

Bankruptcy

Bankruptcy is a legal process you can enter if you have insufficient, non-exempt assets to pay your debts. In bankruptcy, the assets of a debtor (business or individual) are distributed among their creditors and the unpaid balance of the liabilities held is relieved. The bankrupt (or insolvent) is typically the initiator of the proceedings.

Consumer Proposal

A Consumer Proposal (or Business Proposal for a business) is an arrangement formally negotiated with creditors. As your administrator, the bankruptcy trustee obtains a legally binding agreement with creditors on your behalf so that you can pay the debt owed (at a portion of the original amount owed), and your creditors agree to forgive the balance.

Debt Consolidation

Debt consolidation is the act of combining your loans or liabilities into a single account that is used to pay off the individual debts, usually involving another loan. A.C. Waring & Associates discusses debt consolidation as the consolidation of present debts, which does not include acquiring more debt such as loans. This alternative pools your current debts into one monthly payment to settle the debt over time.

The trustee negotiates this with creditors officially. This method often results in a great reduction of the original amount owed. This then becomes a Consumer Proposal.

 

Where To Find Us

Find us in the First Edmonton Place building on the corner of Jasper Avenue and 107th Street, behind the Corona LRT Station. Street meter parking is available along Jasper Avenue as well as 106th and 107th Streets, and paid surface parking is off of 106th Street, and underground parking for First Edmonton Place is off of 107th Street.

A.C. Waring &
Associates Inc.

  • First Edmonton Place
    410-10655 Jasper Ave NW
  • Edmonton, AB T5J 3S9

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