Bankruptcy is a legal process in which you surrender certain of your assets to a Licensed Insolvency Trustee for disposition and distribution of the sale proceeds to your creditors in exchange for financial relief and forgiveness of most, if not all, of your debts and obligations. A bankruptcy is intended to provide an honest but unfortunate debtor with relief from overly burdensome or pressing debt, offer them a fresh start, and stop creditors from being able to take collection or legal action against you.
A bankruptcy process allows for the retention of most assets by a bankrupt, with the assets you are able to keep are categorized and described as exempt assets. The intended framework of the Bankruptcy and Insolvency Act allows for the equitable and fair treatment for not only a bankrupt but their creditors and a fair split of the money from the sale of your non-exempt assets amongst a bankrupt’s creditors.
When a person goes bankrupt, the process is referred to as the filing of an “Assignment in Bankruptcy” and the individual filing an assignment in bankruptcy is referred to as the “Bankrupt”.
BASIC STEPS IN FILING FOR BANKRUPTCY
The steps involved in a bankruptcy include filing the Assignment in Bankruptcy, serving notice of your bankruptcy to your creditors, realizing on or selling your non-exempt assets, the filing of tax returns, attendance at two financial counselling sessions, and depending how much you make while bankrupt the sharing of a portion of your income with your creditors. If everything goes well you are then eligible for forgiveness of your bills and a discharge from bankruptcy.
HOW CAN I FIND OUT MORE?
If you are considering bankruptcy this website and the pages contained herein will provide you with further details and may address many of the questions you may have. We encourage you to give us a call. We are friendly, easy to talk to and we are here to provide advice, solutions and our support.
In addition to giving us a Call our website offers a series of options for our readers to do some of their own research including an ability to review the most commonly asked questions we receive, an ability to post an anonymous question to our Cameron-Okolita Inc.Blog, and the ability to e-mail an Alberta Bankruptcy Trustee in your local area to ask a question or receive some personal advice free of charge.
Taking the first step and making the first contact with a Bankruptcy Trustee is always the hardest. Our goal is to provide friendly, helpful and conscientious service and offer clear explanations and practical solutions for Albertans in need of financial help.
Our initial consultations are always free, and our advice is available on a no obligation basis. Once people make a decision to file bankruptcy, it is pretty common for us to hear, “We wish we had contacted you sooner,” or “We wish we had come to see you sooner.”
We encourage you to feel free to contact us and explore the debt relief options available to you.