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.

Calgary Personal Bankruptcy Office

1500, 640 – 5th Avenue SW, Calgary, AB, T2P 3G4

Calgary Personal Bankruptcy Office

Other Debt Management Options

While bankruptcy can offer a fresh start, it’s not your only option. Speaking with a licensed LIT can help you evaluate other debt management options such as:

Consumer Proposal

A Consumer Proposal is a formal, legally binding process that is administered by a LIT. It includes negotiating a “deal” with your creditors to pay back a percentage of the debt you owe them, or extend the time you have to pay off the debts, or both.

Debt Consolidation & Debt Repayment Plans

Debt consolidation involves combining multiple debt payments into one. This can be achieved through a loan or a debt management program with a non-profit credit counselling organization.

Debt Settlement

Sometimes, it’s possible to pay back only part of a debt. That’s where a debt settlement with a reputable company might help. This process involves negotiating with your creditors to allow you to pay a “settlement” to resolve your debt — a lump sum that is less than the full amount that you owe.

The Bankruptcy Process in Calgary

The process of filing for Bankruptcy in Calgary can take several months, and your LIT will explain the process step-by-step so you know exactly what is expected of you.

Implication on Credit Score

Bankruptcy can significantly damage your credit rating, reducing your credit score to the lowest possible rating by most Canadian credit bureaus. This may affect your borrowing options in the future, including being able to renew your mortgage.

Bankruptcy vs Insolvency

Bankruptcy and insolvency are terms that are often used interchangeably, but they do mean very different things. Insolvency refers to a state of financial distress, whereas Bankruptcy is a legal procedure to manage insolvency.

How Long Does Bankruptcy Last?

The duration of bankruptcy depends on your individual circumstances and whether you have declared bankruptcy in the past. If this is your first bankruptcy, it should last approximately nine months, provided you fulfill all the duties assigned to you by your Licensed Insolvency Trustee.

Taking Control of Your Debts

With the help and advice of a Licensed Insolvency Trustee, you can have a plan of action to clear your debts and move towards financial wellbeing. Remember, it’s never too late to seek help for your debts.


Bankruptcy is a complex process and one that should not be taken lightly. If you’re considering filing for Bankruptcy in Calgary, it’s crucial to consult with a Licensed Insolvency Trustee to understand all your options and decide the best course of action for your situation. So, if you’re struggling with debt and considering Bankruptcy in Calgary, remember that there are professionals ready to help guide you through the process and toward a better financial future.

Contact Us Today

We help Calgary residents get out of debt with our government licensed personal bankruptcy services.