Bankruptcy in Edmonton, the last resort but often best solution when debt is controlling your life.
What is Bankruptcy ?
Simply put, the process to eliminate debt and rehabilitate a financial situation for consumers or corporations.
Filing bankruptcy in Edmonton is a legal process that is governed by the Federal Bankruptcy & Insolvency Act. It is a process that is administer by a licensed bankruptcy trustee, like Goth & Company Ltd., and is designed to eliminate your unsecured debt. When you file for bankruptcy there is immediate court protection that stops the collection rights of your creditors and gives you the space to fulfill the duties required during a bankruptcy.
It is through the successful completion of the bankruptcy process that an honest but unfortunate debtor is cleared from these debts in a fashion that also treats the creditors an equal and fair manner.
When should I consider the filing of a bankruptcy?
The bankruptcy process is designed as a last resort for individuals and families who are in a position where they cannot afford to deal with their debt in any other fashion. Here are the top signs you should be discussing your finances with a bankruptcy trustee
Avoid answering the phone afraid of harassing creditors
Paying minimum payments on credit cards
Owe CRA back taxes for multiple years
Wages garnished for unpaid bills
Turned down multiple times for extended credit
Use one credit card to pay another
Repeatedly use cash advance or pay day loans
Skip payments or are behind on accounts
Goth & Company we believe it is important for everyone to understand that there are more options than bankruptcy in Edmonton, other solutions exist.
To help ensure everyone is aware of what those options are we provide a free initial consultation where we examine your financial position and outline all the options that exist, including consolidation loans, debt management plans (or Orderly Payment of Debt here in Alberta), consumer proposals and bankruptcy.
Who is eligible to file for bankruptcy or in Edmonton?
In Edmonton, to be eligible to file for bankruptcy, you must:
Owe at least $1,000; and
Not be able to make your regular payments as they become due; or
Would not be able to pay all of your debts if all your non-exempt property was sold.
Does the filing of bankruptcy clear me from all of my debts?
While filing for bankruptcy will clear you from most of your debts, are a few exceptions. These exceptions include:
Secured creditors (eg. mortgage or car loan)
Court fines and penalties (including traffic violations)
Debts obtained by fraud or misrepresentation
Civil lawsuits involving intentional bodily harm, sexual assault or wrongful death
Student loans, if you have taken any classes in the 7 years prior to filing
What does it cost to file for bankruptcy in Edmonton?
There is a cost to file a bankruptcy that is regulated by the Federal Government. The cost is dependent on the following factors: Income, Family Size, and Assets you own.
For more information on the cost you are best to contact Goth & Company Inc. directly and we can explain how the cost is determined in much greater detail.
Can my creditors continue to harass me after I file for bankruptcy?
No, upon the filing of a bankruptcy there is an automatic stay of proceedings. This is a legal proceedings that revokes any of your unsecured creditors collection rights. If they call you, don’t panic. Just explain that a bankruptcy has been filed, and give them our name and phone number (see Goth & Company Ltd.).