Going Bankrupt in Edmonton For Debt Relief
There are many solutions available to people seeking to resolve their financial issues, and one of the most popular options is bankruptcy.
If you’re looking for a debt relief solution, filing for bankruptcy in Edmonton is one way to achieve that goal.
If you’re new to bankruptcy, you must take the right steps before and during your filing for bankruptcy in Edmonton.
With that in mind, this handy primer will give you all the information you need to make the right decisions.
Here’s what you need to know:
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Bankruptcy eligibility
Just over four out of every 1,000 Canadians have been made insolvent in 2018, according to official statistics from the Canadian government.
As such, bankruptcy is not an uncommon legal process for individuals to go through.
You’ll likely already know what is bankruptcy and what it means to be insolvent.
But, do you know whether you’re eligible to file for bankruptcy or not?
In Canada, you can only be eligible for bankruptcy if you have at least $1,000 of debt that you cannot afford to pay back.
If you owe less than $1,000, or there’s a high chance that you can afford to meet your debt repayments with some adjustments, bankruptcy might not be for you.
For example, a Consumer Proposal might be a better option for your needs.
How to file for bankruptcy in Edmonton
When you’re ready to begin filing for bankruptcy in Edmonton, the first thing you must do is choose a Licensed Insolvency Trustee (or “LIT” for short).
Working with a federally-licensed LIT is better than going through an intermediary such as a financial advisor.
That’s because those third parties will likely charge fees for a) the simple act of speaking with you and b) referring you to a LIT.
Once you are in contact with a federally-licensed LIT, they will then discuss the process with you and check that you’re still prepared to go ahead with bankruptcy proceedings.
They will then go through your list of debts and debtors with you, in private and confidentially.
At that stage, it’s essential you disclose all your assets as well.
Plus, you’ll need to provide details of all income sources.
Once that stage gets completed, the LIT will then guide you through to the best debt relief solution for your financial situation.
If you agree to a solution, you’ll then get asked to sign some documents to formalize the bankruptcy process.
Those documents will get submitted to the Office of the Superintendent of Bankruptcy.
When your LIT gets officially appointed as your trustee, they will notify your creditors of your bankruptcy.
It’s at that point that all payments to unsecured creditors must stop.
During the bankruptcy period, which is a minimum of nine months, you must legally fulfil your duties and obligations under the terms of your bankruptcy.
After your bankruptcy period ends, you can then start afresh as a debt-free person.
Next steps
Contact Bankruptcy Canada today to find out if filing for bankruptcy in Edmonton is the right solution for your needs.
You can call us on (877) 879-4770.
All calls are confidential, and there no risk or obligation.
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What is Bankruptcy?
Bankruptcy FAQs
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What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
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