How to file for bankruptcy in Alberta?

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Thinking about bankruptcy in Alberta? Chat with a Licensed Insolvency Trustee. You’ll need at least $1,000 in unsecured debt. Filing can be done remotely, giving you creditor relief. Your Trustee will guide you, but remember, not all debts disappear. Focus on rebuilding your credit afterward.

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Alberta Bankruptcy Question

How to file for bankruptcy in Alberta? How do I go about filing for bankruptcy in Alberta, and what’s the process like?

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

Alberta Bankruptcy Answer

If you’re considering bankruptcy in Alberta, the first step is to have a chat with a Licensed Insolvency Trustee. They’ll help you size up your finances and see if you qualify—basically, you need to owe at least $1,000 in unsecured debt and not be able to keep up with payments. Once you’re good to go, you can kick off the process remotely via phone, email, or video chat with your LIT. They’ll need a peek at your debt, assets, and income details.

When you file, you’ll get some breathing room from creditors thanks to a stay of proceedings, while your trusty LIT takes the wheel. They’ll manage things like tracking your monthly income and payments until your debts get the boot, usually in nine months for first-timers without extra money to spare.

Heads up, though—you’ll need to hit up two credit counselling sessions during the bankruptcy journey. The LIT will have your back through paperwork, meetings, and reports until you’re in the clear. Just a side note, not all debts vanish in bankruptcy—stuff like student loans and child support might stick around. Once you’re through it, focus on beefing up your credit and keeping your financial house in order to dodge future money woes.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

To file for bankruptcy in Alberta, follow these steps:

1. Consult a Licensed Insolvency Trustee (LIT): The first step is to speak with a LIT who will evaluate your financial situation and discuss your options.

2. Gather Financial Information: Prepare a complete list of your assets, liabilities, income, and expenses. This is necessary for the trustee to assist you effectively.

3. Complete the Bankruptcy Documents: The LIT will help you fill out the required bankruptcy forms. These include the statement of your financial affairs.

4. File the Bankruptcy Application: Once the forms are completed, the LIT will file them with the Office of the Superintendent of Bankruptcy (OSB) on your behalf.

5. Automatic Stay of Proceedings: Upon filing, an automatic stay of proceedings is granted, which stops creditors from pursuing you for debts.

6. Attend Credit Counseling Sessions: You will be required to complete two credit counseling sessions throughout the bankruptcy process.

7. Asset Assessment: The trustee will evaluate your assets and determine what can be seized or sold to pay creditors, as outlined under the Bankruptcy and Insolvency Act.

8. Creditors’ Meeting: If necessary, a meeting with creditors may be scheduled, where they can ask questions regarding your financial situation.

9. Debts Discharge: After completing your obligations under the bankruptcy process (typically 9 to 21 months), you may apply for a discharge of your debts, as per the provisions under section 170 of the Bankruptcy and Insolvency Act.

Refer to the Bankruptcy and Insolvency Act, RSC 1985, c. B-3 for further details on the specific legal framework and requirements.

From: OSB Helper

Related Questions to Filing For Bankruptcy

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

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

To be eligible, you must be insolvent, meaning you owe at least $1,000 and are unable to pay your debts[1][4][5].

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

The steps include booking a free consultation with a Licensed Insolvency Trustee, gathering necessary documents, and filing the bankruptcy documents electronically[4].

3. What documents are required to file for bankruptcy in Alberta?

Required documents include the Assessment Certificate, Monthly Income and Expense Statement (Form 65), Statement of Affairs (Form 79), and the Assignment For The General Benefit Of Creditors[4].

4. What are the obligations of a bankrupt individual in Alberta?

Obligations include handing over non-exempt assets, cancelling credit cards, making monthly payments, completing credit counselling sessions, and preparing monthly income and expense statements[4].

5. How much will I have to pay if I have low or no income and no assets when filing for bankruptcy in Alberta?

If it is your first-time declaring bankruptcy, you will typically pay $200 per month towards the bankruptcy estate for a total of nine months[4].

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

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