HOW LONG WILL I BE BANKRUPT IF I FILE A PERSONAL BANKRUPTCY IN ALBERTA?
A person who decides to file personal bankruptcy in Alberta and who is a first-time bankrupt, can be eligible for an automatic discharge from bankruptcy as early as nine months after filing bankruptcy. There are several factors, however, that can affect how long a person remains bankrupt after they file bankruptcy, and depending on these factors, their file can take longer to resolve than the minimum nine months.
The Principal Factors to consider are:
- Have you filed bankruptcy or a proposal previously and if so, how long has it been since your last bankruptcy file was closed and you were discharged?
- How much do you make each month, and do you have the ability to pay something to your creditors?
- Have you completed all the Duties Required of you in connection with your bankruptcy file?
- Have your creditors in your bankruptcy file or your Bankruptcy Trustee objected to your discharge from bankruptcy for non-performance of your bankruptcy duties or your financial conduct?
IS THIS A FIRST OR SECOND BANKRUPTCY?
People who file second or subsequent assignments in bankruptcy are not eligible for an automatic discharge after nine months, and their bankruptcy file and discharge…
In order to obtain a discharge, the Bankruptcy Trustee will have to file or make an application to Court, where the merits of one’s discharge will be heard. Notwithstanding that most second-time bankrupts who file personal bankruptcy get their discharge, the Courts may ask a bankrupt to confirm why did they file an assignment in bankruptcy a second time? When did they file their last assignment, etc, etc., and why did they file that assignment? The Court wants to make sure that people who are filing bankruptcy are not repeating the same mistake, taking bankruptcy lightly, or abusing the system.
Although the Courts are more cautious when people file a second or subsequent personal bankruptcy assignment, there are many valid reasons people find themselves filing bankruptcy again, and the Court recognizes that, and in most cases, is not punitive.
HAVE ALL DUTIES BEEN COMPLETED?
If you file an assignment in bankruptcy, your Bankruptcy Trustee will detail or outline a series of duties a person must complete before being eligible for a discharge from bankruptcy and forgiveness of your debts. An Alberta Bankruptcy Trustees can help outline and explain the Duties of a Bankrupt person when they file bankruptcy in Alberta.
HAVE THE CREDITORS OR BANKRUPTCY TRUSTEE OBJECTED?
If you do not complete the duties required of you in connection with your bankruptcy file, the Trustee must object to your discharge. If your creditors believe your conduct or actions prior to your bankruptcy require further scrutiny, or you have failed to disclose an asset, etc., in connection with your bankruptcy file, they may object to your discharge.
Although in the vast majority of cases, a bankruptcy is only nine months long, the length of time a person will be bankrupt if they file for bankruptcy protection depends on each person’s particular situation. For a complete assessment of your circumstances, and an explanation of the steps necessary to file personal bankruptcy in Alberta, you should contact an Alberta Bankruptcy Trustees.