Personal Bankruptcy Calgary
Navigating the Complexities of Bankruptcy in Calgary
Personal financial struggles can be overwhelming and scary, but keep in mind that you’re not alone. In 2020, during the Covid-19 pandemic, 99,244 insolvencies were filed in Canada with the Office of the Superintendent of Bankruptcy. One of the popular ways people seek refuge from such financial turmoil is through filing for bankruptcy. However, Bankruptcy in Calgary, like in any other part of Canada, is not a straightforward process and it’s not the only way out of debt.
Breaking Down Bankruptcy
Bankruptcy is a legal process that allows individuals or businesses unable to pay their debts to eliminate or repay part or all of their debts under the protection of the bankruptcy court. Bankruptcy in Calgary is governed by the Bankruptcy and Insolvency Act and can only be administered by Licensed Insolvency Trustees (LITs).
Who Can File for Bankruptcy?
Anyone considering filing for personal bankruptcy needs to meet specific eligibility criteria:
- Must be over 18 years old;
- Must be a permanent resident in Canada;
- Must have more than $1,000 of unsecured debt;
- Must be unable to pay back the debt you owe.
Even if you meet these criteria, bankruptcy may not be the best solution for you. It’s crucial to discuss your options with a Licensed Insolvency Trustee.
Licensed Insolvency Trustees (LITs)
LITs are the only professionals in Canada that can file and administer bankruptcies. They are trained by the federal government and their job is to ensure that both the debtor and creditor are treated fairly. It’s crucial to find a LIT in Calgary that you feel comfortable with.
Companies like Bankruptcy Canada, a Licensed Insolvency Trustee firm in Alberta, have helped individuals with debt since 1999. They can provide you with solutions and assist you in making the right decision for your finances.