Declaring Bankruptcy In Alberta
Bankruptcy helps you restart your finances and wipe you’re your debts. You may file for insolvency if you have a total debt of at least $1,000. A licensed bankruptcy trustee then files for bankruptcy consideration for you. They will manage your assets in a trust and pay creditors some of the debts you owe. You will turn over your assets to the trustee and they will sell it. The money earned from it will be used to repay your creditors. Some assets are exempt, so you should ask the trustee regarding this matter.
Bankruptcy proceedings in Alberta can take time, usually from 9 months to 3 years. It depends on your personal history and financial situation and whether you are filing for personal bankruptcy or business bankruptcy. You also need to review your outstanding debts, assets, and income to determine whether you are qualified for bankruptcy protection or not. It’s also important to determine what other options you have. You may not need to file for bankruptcy at all. Our insolvency trustees Red Deer advisors can help you find financial solutions that suit you as well as your creditors.
Pros & Cons Of Declaring Bankruptcy In Alberta
- Eliminate Most Of Your Debts – Debt collectors won’t be able to pester you for debts discharged in the bankruptcy process.
- Protection Of Personal Assets – When you file for bankruptcy in Alberta, you don’t need to worry about losing your job or home. Canadian bankruptcy law protects personal assets such as your home from creditors.
- Affects Your Credit For Almost 7 Years – Bankruptcy negatively affects your credit score for 7 years. It will be difficult for you to get credit extensions and new loans during this period of time. You will have few assets as well. If your car is worth over $5,000, you have to surrender it.
- Bankruptcy Doesn’t Eliminate All Of Your Debts – Even if you file for bankruptcy, you still need to pay your mortgage and alimony as well as student loans.
One of the most important things that you need to keep in mind is that declaring bankruptcy doesn’t mean you’re negligent or irresponsible. It’s a sign that you want to improve your current financial situation and move on. Our Red Deer insolvency trustees can help with this confusing process.
What To Do If You’re Finally Decided To Declare Bankruptcy In Alberta
If you think that bankruptcy is the only option you have right now, you can call us, and we will help you assess your financial situation. You don’t want to cause more damage to your credit score. That is why we are here! We will work with you to determine the best solution for you, so you can be financially stable once more.
After reviewing your debts and financial situation, you might find out that you don’t even need to file for bankruptcy. We have a team of qualified trustees and insolvency Red Deer advisors who can help you determine whether declaring bankruptcy in Alberta is the right choice for you. We can find low-cost options that work not only for you but for your creditors as well. Schedule a consultation with us today!