Creating Bankruptcy Documents
Next, your LIT can begin administering the bankruptcy process—this is something a LIT must do. To do this, the LIT will need various information to compile the necessary documents for filing.
There will be some additional documents depending on your specific circumstances, but these bankruptcy documents will include:
- The Assessment Certificate
- Your Monthly Income and Expense Statement (Form 65)
- The Statement of Affairs (Form 79)
- The Assignment for The General Benefit Of Creditors
Filing Bankruptcy Documents
Next, you will witness and sign these documents. Then, your licensed Insolvency Trustee can begin filing these documents. Filing is an electronic process, and once your document is uploaded, your LIT obtains a Certificate of Appointment. This certificate confirms the initiation of your bankruptcy.
Once this process is complete, your creditors can receive notice that a “Stay of Proceedings” is in effect. Then, they must deal directly with your Licensed Insolvency Trustee for future communication. With this “Stay” in place, it protects you from legal action on your debts, collection calls, interest charges, and wage garnishment.
Duties and Legal Obligations
During your first meeting with a LIT, they will explain the duties and obligations you can expect after filing for bankruptcy.
- Handing over all non-exempt assets to your licensed Insolvency Trustee
- Giving your credit cards to your LIT for cancelling and closing
- Paying the set monthly payment towards your bankruptcy estate
- Completing two sessions of credit counselling before the deadline (Learn more about credit counselling here)
- If applicable, paying the required surplus payments
- Preparing a monthly income and expenses statement for your LIT
- Giving your LIT any information they need to file your tax returns
After completing your duties and obligations as bankruptcy, what comes next?
If you have met all of these obligations and completed the bankruptcy period, you should receive an automatic discharge from your bankruptcy. If this is your first time filing for bankruptcy in Alberta, this should happen after nine months. In the event of your second bankruptcy, at 24 months.
(Visit this post next for tips on rebuilding your credit after declaring bankruptcy)