Debt Free®

The Debt Solutions People®

Personal Bankruptcy Services in Edmonton

Call Us Today

What Is Personal Bankruptcy?

No one wishes to file bankruptcy during their lifetime, but it is an option if you find yourself without enough resources to pay your debt. Declaring personal bankruptcy can provide you with an opportunity to start fresh and get your credit back where it needs to be.

Personal bankruptcy is declared when an individual (also known as a debtor) is unable to repay their debts for a number of reasons.

​​The Bankruptcy Process

Learn more about the bankruptcy process requirements, what you need, and what you can expect.

Requirements

The Bankruptcy and Insolvency Act lays out very general requirements to be considered for bankruptcy. To qualify, you:

  • Must be a resident of Canada
  • Are unable to pay your bills when they are due
  • Owe more than $1,000

Once you have met with a Licensed Insolvency Trustee, you will review your entire financial situation. Your particular circumstances will determine the method of debt resolution they may suggest to you.

For this meeting, you should have lists of your creditors and assets, your personal information (name, birthdate, address), and provide your trustee with detailed income and expense information.

After you and your trustee go over your options, the next step is to have documents prepared for signature to file for bankruptcy should bankruptcy be the decided debt resolution.

If this is the first time you have filed for bankruptcy, you will be in a state of bankruptcy for 9 to 21 months.

During this period, there will be a “stay of proceedings,” which means unsecured creditors cannot continue to pursue payments, begin or continue lawsuits, or garnish wages.

You will also need to attend 2 financial counselling sessions regarding money management issues.

Your bankruptcy ends when you receive your “discharge,” effectively freeing you from all your debts. Your period in bankruptcy might be extended if you are making a surplus income in excess of the income limit set by the federal government. This may also require a portion of the income to be paid towards your bankruptcy.

The discharge may also be extended if this is not your first bankruptcy.

Advantages & Disadvantages of Personal Bankruptcy

Advantages

  • Provides legal protection from unsecured creditors
  • Halts debt collecting agents
  • Ensures essential services such as gas, water, etc.
  • Eliminates most unsecured debts
  • Cost is inexpensive compared to the amount of debt owing

Disadvantages

  • Co-signers on loans will become responsible for said loans
  • Some debts might still be enforceable (secured creditors)
  • Credit cards must be turned over to the trustee
  • Credit rating, already affected for up to 6 years, will include notification of bankruptcy on all credit reports

How Debts Are Addressed

Debts are classified under different categories. Read about unsecured debts, secured debts, assets, and liabilities.

Unsecured Debts & Secured Debts

There are 2 types of debts you can procure: unsecured debts and secured debts. Most unsecured debts can be discharged after the set bankruptcy period. Some of these debts include:

  • Credit card balances
  • Bank loans
  • Unpaid utility bills
  • Payday loans

However, some unsecured loans will not be released upon discharge, including:

  • Student loans less than 7 years old
  • Child/spousal support
  • Court-ordered fines and debts

Secured debts, like a mortgage on real estate or a car loan, will also remain in place notwithstanding filing for bankruptcy unless the asset is foreclosed or repossessed.

Quite simply, assets are what you own, and liabilities are what you owe. Assets can include chequing and savings accounts, cars, houses, furniture, or even artwork. Liabilities are debts like mortgages, car payments, and credit card balances.

The value of your assets and liabilities is a conversation you will have with your trustee. Many assets, however, are exempt from bankruptcy pursuant to provincial law.

What’s Next?

After the 9-month bankruptcy period, unsecured debts will be wiped away and you will no longer be responsible for them. 

Declaring bankruptcy may or may not significantly affect your credit rating. Usually, insolvent individuals already have delinquent accounts that negatively affect their credit bureau standing. That said, it is an opportunity for you to set yourself on the right path towards improved financial planning and financial independence.

A.C. Waring & Associates can help you make a plan to get out of your financial difficulties. Call us now and get started.

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

Contact
Information

Our Testimonials

Blog

How To Qualify for Debt Relief in Canada

DebtDebt Management

If you are feeling overwhelmed by debt, you are not alone. Canadians across the country, particularly in Alberta, face significant financial challenges. But there is hope. Debt relief programs offer a lifeline for those drowning in debt. There is no one-size-fits-all answer to qualifying for debt relief in Canada, as the answers vary depending on […]

Read More…

November 22, 2024
Arthur Waring

Understanding CRA Collections & Your Business Tax Debt

DebtTaxes

Like individuals, businesses sometimes find themselves in circumstances where they have trouble paying their bills. Sometimes, these debts can include outstanding taxes owed to the Canada Revenue Agency (CRA). If taxes remain unpaid for long enough, the CRA is legally entitled to take collections action against you.  Because of its status as a government agency, […]

Read More…

October 28, 2024
Arthur Waring

How Debt Consolidation Works in Canada: A Detailed Guide

DebtDebt Management

Dealing with debt can feel overwhelming. You might be tempted to think of “overwhelming debt” as owing a large amount of money. Sometimes, though, meeting all of your minimum monthly payments to several different creditors can be a challenge even when the overall debt number is not that high. In cases like this, many debt […]

Read More…

October 28, 2024
Arthur Waring
A licensed insolvency trustee reviews an Albertan couple's debt relief solutions with them.

If you are feeling overwhelmed by debt, you are not alone. Canadians across the country, particularly in Alberta, face significant financial challenges. But there is hope. Debt relief programs offer a lifeline for those drowning in debt. There is no one-size-fits-all answer to qualifying for debt relief in Canada, as the answers vary depending on […]

Read More…

A tabletop with wooden letters spelling "TAX", a calculator, a pen, and a sheaf of papers.

Like individuals, businesses sometimes find themselves in circumstances where they have trouble paying their bills. Sometimes, these debts can include outstanding taxes owed to the Canada Revenue Agency (CRA). If taxes remain unpaid for long enough, the CRA is legally entitled to take collections action against you.  Because of its status as a government agency, […]

Read More…

A close-up of a person's hands holding two large wooden puzzle pieces. One says "Debt", and the other says "Consolidation".

Dealing with debt can feel overwhelming. You might be tempted to think of “overwhelming debt” as owing a large amount of money. Sometimes, though, meeting all of your minimum monthly payments to several different creditors can be a challenge even when the overall debt number is not that high. In cases like this, many debt […]

Read More…

Professional Affiliations

instagram facebook facebook2 pinterest twitter google-plus google linkedin2 yelp youtube phone location calendar share2 link star-full star star-half chevron-right chevron-left chevron-down chevron-up envelope fax