Filing for Bankruptcy in Alberta
Alberta – The leading province for debt
If you are a resident of Alberta and are struggling with consumer debt, you are certainly not alone.
In fact, Alberta is the leading province for debts not associated with mortgage payments in the whole of Canada.
Of course, truth be told, it’s not only Albertans that struggle with debt, but many throughout Canada.
After all, as consumers, we will always want credit and loan options to buy cars, homes and pay for significant experiences like college.
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Unfortunately, we cannot always predict what our own personal financial situation will be in the future.
Nor can we see the future of the market as a whole.
Something that means many of us find ourselves in a position where we have debts that we cannot pay.
The good news is that if you are in such a position, there are debt relief options that can help.
However, these debt solutions do not suit every individual and every case.
In fact, instead, some people choose Filing for Bankruptcy in Alberta as their debt relief option.
Filing for Bankruptcy in Alberta
Bankruptcy works by clearing all unsecured debts that you owe.
Thus allowing you to start again with your finances and build them and your credit record back up.
However, it is essential to note that secured debts cannot be cleared by the bankruptcy process.
That means you will still be responsible for anything when you have put a deposit down on.
One example of this being a mortgage.
Something vital you must bear in mind when making the decision of whether to proceed or not.
Filing for Bankruptcy in Alberta is pretty simple too.
In fact, you only have to have a debt of over $1000 to begin the process.
Although, because there are some consequences of filing for bankruptcy, it’s a more sensible idea to only do so if your debt is much larger.
The first step to bankruptcy is Alberta to approach a licensed trustee specialising in this area and make an application.
This is what is known as filing for bankruptcy.
This trustee will then begin to agree to a settlement with your debits and start to pay these off.
Of course, the money that the trustee uses to settle these debts isn’t free and doesn’t appear from nowhere.
In fact, it is money that they will aim to recuperate by claiming your assets.
A process that you will have agreed on as you enter into a bankruptcy agreement.
Advantages and disadvantages of declaring bankruptcy in Alberta
Now, the thought of turning over all your worldly possessions in the process of bankruptcy can sound pretty intimidating.
In fact, it can seem like a significant disadvantage.
However, it is essential to note that you will be allowed to keep some of your assets and personal items.
These usually include clothing, vehicles valued under $500, and items such as your laptop if it’s needed for work. A
lthough the specific conditions of your bankruptcy agreement will differ from person to person.
Another disadvantage that many people are concerned about when filing for bankruptcy is the impact that it can have on your credit score and ability to secure loans in the future.
The reason for this is that when you are declared bankrupt, a note will be made on your credit record that lasts from 7-14 years!
This note can then negatively impact your rating and stop you from being eligible for borrowing of all kinds.
Of course, despite such disadvantages, the statistics show that the number of people Filing for Bankruptcy in Alberta is rising.
This is because, for those people, the positives outweigh the negatives.
After all, there are few other debt relief solutions where the amount you owe is wholly erased like it is in bankruptcy.
Additionally, unlike some of the other debt relief solutions mentioned above, bankruptcy will provide you with less stress in your life.
The reason is that once you file, credit agencies and debt collectors can no longer chase you for the debts that you owe them.
Are you considering filing for Bankruptcy in Alberta?
Now you understand more about the process, you may consider bankruptcy as a viable option.
However, if you are still unsure or would like some advice on this or any other type of debt, relief gets in contact with us today on 1-877-879-4770.
Our non-judgemental experts are waiting for your call.
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