What are the common questions about bankruptcy impacts?

_{bankruptcy, credit score, Alberta}

This page addresses the most common questions people have about bankruptcy in Canada. From understanding what bankruptcy involves to how it impacts your credit score and what assets you may keep, it provides clear answers to frequently asked questions. Topics covered include how long bankruptcy lasts, whether you can file more than once, what debts are discharged, and how to rebuild credit after bankruptcy. It’s a valuable resource for anyone considering bankruptcy and looking for straightforward information to help navigate the process.

_{How bankruptcy impacts your credit score in Canada.}

Question

What common questions do people have about bankruptcy? I’m looking for answers to frequently asked questions about bankruptcy.

From: Anonymous Question, Alberta (AB)

Answer

Many folks often wonder how filing for bankruptcy will impact their credit score. In Canada, you’re looking at a bankruptcy showing up on your credit report for about six to seven years, depending on which credit bureau you’re dealing with. This can make snagging credit during that period a bit tricky. Then there’s the worry about assets—like your house or your car—what happens to those? In most situations under Canadian law, you’re allowed to keep essential personal possessions. A licensed insolvency trustee can help guide you on which items may be safe from seizure during the process.

From: Insider Scott

OSB Based Answer

What common questions do people have about bankruptcy?

1. What is bankruptcy and what does it involve? Refer to the Bankruptcy and Insolvency Act, Section 2, which defines bankruptcy as a legal process that can offer relief to individuals unable to pay their debts.

2. How long does a bankruptcy last? Bankruptcy typically lasts for 9 months for a first-time filer, as outlined in the Bankruptcy and Insolvency Act, Section 168.

3. Will I lose my assets if I declare bankruptcy? The framework for asset liquidation is detailed in the Bankruptcy and Insolvency Act, Section 67, which lists exemptions that may allow individuals to keep certain assets.

4. How does bankruptcy affect my credit score? The impact on a credit report is explained in the credit reporting regulations, as stipulated in C.R.C., c. 368, where it outlines how bankruptcy is reported.

5. Can I file for bankruptcy more than once? Under the Bankruptcy and Insolvency Act, Section 2, individuals can file for bankruptcy more than once; however, the duration of bankruptcy may differ based on previous filings.

6. What debts are not discharged in bankruptcy? According to the Bankruptcy and Insolvency Act, Section 178, certain debts such as student loans and tax obligations may not be discharged through bankruptcy.

7. Can I keep my credit cards when I file for bankruptcy? The status of credit cards during a bankruptcy is discussed in the Bankruptcy and Insolvency Act, Section 69, which generally mandates that all credit accounts are closed upon filing.

8. What should I do to rebuild my credit after bankruptcy? Bankruptcy impacts credit, and rebuilding efforts can be guided by the principles outlined in credit regulations, though specific steps are not detailed in the Act.

9. How do I choose a licensed insolvency trustee? The regulations regarding licensed insolvency trustees are outlined in SOR/2007-256, which include the qualifications and the process for selection.

10. Will my bankruptcy be public information? The public nature of bankruptcy is stated in the Bankruptcy and Insolvency Act, specifically Section 109, where it is indicated that bankruptcy filings are a matter of public record.
    
    From: This answer is provided by scanning the OSB Bankruptcy & Insolvency Act and related directives
    
    

References

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