How to claim bankruptcies in Alberta?

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Kicking off a bankruptcy claim in Alberta starts with a chat with a Licensed Insolvency Trustee. They evaluate your situation and gather documents to pause creditor actions and receive your Certificate of Appointment. Responsibilities post-filing include surrendering non-exempt assets and attending credit counseling. Alberta offers a unique twist on asset exemptions. Got questions? Reach out via phone, text, or live chat. Not all trustees can be trusted.

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Alberta Bankruptcy Question

How to claim bankruptcies in Alberta? What’s involved in claiming bankruptcy in Alberta, and how is it different from other provinces?

From: Anonymous Question
Location: Waterloo, Ontario (ON)
Category: personal bankruptcy

Alberta Bankruptcy Answer

To kick off a bankruptcy claim in Alberta, your first stop is a chat with a Licensed Insolvency Trustee. They’ll dive into your financial world, assess your situation, and see if you’re eligible. To get the ball rolling, there are some key documents you’ll need to pull together: an Assessment Certificate, a Monthly Income and Expense Statement (Form 65), a Statement of Affairs (Form 79), and an Assignment for the General Benefit of Creditors. Once you’ve prepped and signed these with the trustee, they’re sent off electronically. This step hits the pause button on any creditor actions and garnishments as you receive your Certificate of Appointment.

Now, after filing, you have a few new responsibilities on your plate: say goodbye to non-exempt assets, attend some mandatory credit counseling, and keep up with those monthly income reports. Remember, while the bankruptcy framework is a federal affair under the Bankruptcy and Insolvency Act, Alberta has its own spin on personal asset exemptions, so things can look a bit different here compared to other provinces. There’s been a noticeable uptick in insolvency cases in Alberta, mirroring trends across Canada, but don’t stress—knowing your way around can help guide you through.

From: Insider Scott

Office of the Superintendent of Bankruptcy (OSB) Answer

To claim bankruptcy in Alberta, you must follow the provisions outlined in the Bankruptcy and Insolvency Act (RSC 1985, c 11). The process involves filing a bankruptcy application with a Licensed Insolvency Trustee. The LIT will assess your financial situation, help you complete the required forms, and assist in filing them with the Office of the Superintendent of Bankruptcy (OSB).

The key steps involved in claiming bankruptcy include:

1. Consultation with a Licensed Insolvency Trustee (Section 50.4 of the Bankruptcy and Insolvency Act).
2. Completing necessary documentation, including a Statement of Affairs (Section 95 of the Act).
3. Submitting the application to the bankruptcy court and obtaining a certificate of appointment (Section 48).
4. Attending a mandatory credit counselling session.
5. Complying with the terms set by the LIT, including making payments if applicable.

In Alberta, as in other provinces, the process is governed by federal law; however, each province has its own regulations regarding how the bankruptcy process is administered locally. Differences may include specific regional requirements for creditor meetings, local court procedures, and potential variations in LIT fees. For Alberta, no significant province-specific deviations exist concerning the legal framework but always check with local regulations for any minor distinctions (C.R.C., c. 368 and SOR/2007-256).

From: OSB Helper

Related Questions to Bankrutpcy Process

Here are the top 5 most frequently asked questions related to claiming 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 conducted business in Alberta within the last 12 months[1][5].

2. How do I start the bankruptcy process in Alberta?

You start the process by contacting a Licensed Insolvency Trustee, who will guide you through the necessary steps and administer your bankruptcy[2][3][5].

3. What happens to my assets when I file for bankruptcy in Alberta?

When you file for bankruptcy, you will effectively turn over your belongings and funds, with some exceptions, to the trustee to distribute among your creditors[2][5].

4. How long does the bankruptcy process typically take in Alberta?

The bankruptcy process typically takes up to 9 months for a first-time bankrupt, but it can extend up to 21 months if you have surplus income or if it is not your first bankruptcy[3][5].

5. Are there alternatives to bankruptcy in Alberta?

Yes, alternatives include Consumer Proposals, informal debt settlements, and debt consolidation, which can be explored with the help of a Licensed Insolvency Trustee[3][4][5].

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

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