Bankruptcy
BANKRUPTCY TRUSTEE EDMONTON
People will experience financial difficulties throughout their lives and depending on severity and duration of those time some financial education and assistance maybe be required. There are many options to explore in your search for a financial resolution, settlements between you and creditors, informal agreements, and consolidation loans these are all options that maybe worth exploring and maybe have some benefit to your situation. However, during these times most people have dealing with significant stress and worry for quite some time coupled with fear of what to do next quite often this fear and stress lead to rushed decisions and consequences that may last longer than expected and have dire results. By discussing your financial situation with a Licensed Insolvency Trustee your getting direct information from a professional Licensed by the Superintendent of Bankruptcy and a federal court officer.
Reasons to declare bankruptcy
Bankruptcy is designed to be a financial fresh start free of threat unsecured creditors and inability to meet the demands of your current financial situation. There are many reasons for bankruptcy and does not need to be one single, maybe multiple reasons, and can affect anyone at any time some reasons for bankruptcy can include:
- Inability to pay debts as they come due within a reasonable amount of time
- Cannot reach a settlement or any informal agreement with your creditors
- Wages, bank accounts have been garnished
- Constantly calling creditors
- Loss of employment
- Deteriorating health
Bankruptcy is an information gathering period while working with a Licensed Insolvency Trustee (LIT) to get your financial fresh start and rebuild your financial future. Who can file bankruptcy:
- Have property and/or conduct business within Canada
- Has liabilities of $1,000.00 in creditors, according to the BIA (Bankruptcy and Insolvency) - and meets one of the following conditions:
- Are unable to meet current financial obligations as they become due
- Has stopped paying the current obligations
- Current financial obligations exceed fair market value of their property
Bankruptcy is a court driven process where the LIT instructs and monitors the individuals progress during the process to assess the outcome of this period. Duration of bankruptcy is subject to Bankruptcy and Insolvency Act and the courts.
However, a first-time bankruptcy may only be 9 months in duration if all individuals’ responsibilities have been met and there is no surplus income. If the circumstance of surplus income does occur the time frame is extended to 21 months monitoring period. With the bankruptcy occurrence appearing on your credit bureau scores for 6 additional years, however there is misconception in the general that you have bad credit during this 6-year time frame, you do not. Once you have been discharged from bankruptcy you are debt free and able to rebuild tour credit, depending on your interest and need for credit will determine the length of time it takes to rebuild your credit to a high standing.
In a second-time bankruptcy the monitoring period is at minimal 24 months and in the instance of surplus income 36 months required before a discharge could occur.
What is going to happen during my bankruptcy and how will it affect me? Is probably the most common question asked when people seek financial assistance and bankruptcy appears to be the only choice. Bankruptcy is governed by the Bankruptcy and Insolvency Act and the Court of Queen’s Bench, so that means everybody has the rules and regulations to adhere to; however, everyone ‘s life and circumstances are different and in turn bankruptcy will be different.
Advantages of Bankruptcy
Bankruptcy is a court driven process which is designed to provide immediately relief to those declaring, such as:
- Garnishes stops immediately
- Collection attempts are to be stopped immediately
- Provides credit counselling
- Clear understanding of one’s finances and potential pitfalls
- Recognizer warning signs of over extension
- Learning how to budget within each individual’s specific situation
Most individuals have been dealing with debt and depending on the stage of debt collections and possibly court proceedings for extended periods of time. Without knowing the correct information regarding bankruptcy and the process involved when working with a Licensed Insolvency Trustee through. The bankruptcy is feral legislated and court driven process with which to an unfortunate individual is entitled to have their debts discharged. Most information in the general public is incorrect and misleading which results decisions being made out of fear and incomplete knowledge which may cost you time and monies seeking a resolution doomed to fail.
How Bankruptcy Works?
Bankruptcy is fluid and dynamic process; this means that as the process unfolds it will be reflected in the conditions of your bankruptcy coming to a completion. By meeting with a LIT you be giving access to firsthand knowledge of the bankruptcy process and laws, first your financial and debt obligations are assessed and what a bankruptcy will look like for you as a debtor moving forward. Every individual has the bankruptcy laws to which they must conform to during this process, which the LIT will provide and keep advised, and upon a successful completion of these duties your debts will be discharged under the bankruptcy and insolvency act. This means you are debt free and free to resume acquiring credit as you normally would before bankruptcy; however, the fact that a bankruptcy has occurred and will remain visible on your credit bureau score for 6 years after the successful completion of your bankruptcy.
What happens if I chose to declare bankruptcy?
When a bankruptcy occurs, you will work with the Licensed Insolvency Trustee (LIT) complete your assessment and at which your bankruptcy will become active after filing with Office of the Superintendent of Bankruptcy (OSB). At which point:
- All payments paid to unsecured creditors and depending on circumstances secured as well will stop
- Any garnishees against wages or bank accounts will stop
- Lawsuits against you will cease, with exceptions according to Bankruptcy and Insolvency Act