How to declare bankruptcies in Alberta?

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First things first, check if you’re insolvent. This means you owe at least $1,000 and can’t keep up with payments. Gather up your financial documents and contact a Licensed Insolvency Trustee (LIT) to explore solutions like bankruptcy or a consumer proposal. They’ll help you sort out the paperwork and navigate the process. Remember, not all trustees can be trusted. Reach out via phone, text, or live chat if you have any questions.

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Declare Bankruptcy Question

How to declare bankruptcies in Alberta? How do I declare bankruptcy in Alberta, and what steps should I take?

From: Anonymous Question
Location: Delta, British Columbia (BC)
Category: personal bankruptcy

Declare Bankruptcy Answer

First things first, let’s figure out if you’re in the pickle known as insolvency. That’s just a fancy way of saying you owe at least $1,000 and can’t keep up with your debts anymore. Gather your financial paperwork—think credit card bills, bank statements, and whatever proof of income you have lying around. Next, get in touch with a Licensed Insolvency Trustee. These folks are like your financial lifelines, ready to help you navigate options like bankruptcy or a consumer proposal. They’ll walk you through the paperwork maze, including forms like an ‘Assignment’ and a ‘Statement of Affairs’ that paint the whole picture of your finances.

If you opt to take the bankruptcy route, your trusty LIT will get your case on the books with the Office of the Superintendent of Bankruptcy. They’ll also help you tackle your commitments, such as attending credit counseling sessions. Keep a good record of all your chats with your LIT—after all, not everyone wears a white hat. Once you’ve checked all the boxes, your bankruptcy can be wiped clean, typically taking anywhere from 9 to 21 months, depending on your situation.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

To declare bankruptcy in Alberta, follow these steps:

1. Determine your eligibility for bankruptcy by assessing your debts and assets, ensuring that your total unmanageable debts exceed $1,000 (Bankruptcy and Insolvency Act, Section 42(1)).

2. Consult a licensed insolvency trustee. They are the only qualified professionals who can administer bankruptcy cases (Bankruptcy and Insolvency Act, Section 3).

3. Complete the bankruptcy forms provided by your LIT, including the Statement of Affairs which details your financial situation (Bankruptcy and Insolvency Act, Section 96).

4. Submit the completed application and forms to the LIT, who will file the bankruptcy with the Office of the Superintendent of Bankruptcy Canada (OSB) (Bankruptcy and Insolvency Act, Section 49).

5. Attend a creditor’s meeting if it is called by the LIT, which can occur within the first 21 days of your bankruptcy (Bankruptcy and Insolvency Act, Section 102).

6. Comply with the requirements and responsibilities outlined by the LIT, including making any necessary payments and attending counseling sessions (Regulations under the Bankruptcy and Insolvency Act, C.R.C., c. 368, Section 18).

Following these steps will help you properly declare bankruptcy in Alberta, ensuring compliance with federal regulations.

From: OSB Helper

Related Questions to Declaring Bankruptcy In Alberta

Here are the top 5 most frequently asked questions related to declaring bankruptcy in Alberta, along with brief answers:

1. What are the eligibility requirements to file for bankruptcy in Alberta?

To be eligible, you must owe at least $1,000 in unsecured debt, be unable to meet your debt obligations, and reside or have property in Alberta[2][5].

2. How does the bankruptcy process work in Alberta?

The process is governed by the federal Bankruptcy and Insolvency Act, involving an assignment of your assets to a Licensed Insolvency Trustee for the benefit of your creditors[2][4].

3. What are the steps to file for bankruptcy in Alberta?

The first step is to contact a Licensed Insolvency Trustee for a consultation, followed by the preparation and filing of necessary documents, and potentially a court hearing if creditors petition for bankruptcy[1][5].

4. What are the alternatives to bankruptcy in Alberta?

Alternatives include Consumer Proposals, debt consolidation loans, and personal insolvency counseling, which can be discussed with a Licensed Insolvency Trustee[3][5].

5. What assets can I keep if I declare bankruptcy in Alberta?

You may be able to keep certain assets such as essential goods, tools of your trade, and a portion of your income, but this varies based on the specific circumstances and provincial exemptions[1][5].

If you have a question about debt see our debt questions or ask your own debt related question.

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