Are you eligible for Bankruptcy in Edmonton, Alberta?

There might be situations where you are under financial pressure and fail to repay your bills and mortgages. Collection agencies start calling you and it might be a time of think for alternate options. One of the options can be filing for Bankruptcy. Bankruptcy filings in Edmonton, Alberta are governed by the Bankruptcy and Insolvency Act. Learn more about the Bankruptcy Act here.

One important qualification for filing Bankruptcy is to be an Insolvent.

To qualify as an insolvent, you must:

• Owe at least $1,000 in debt
• Unable to pay your dues, and
• Have more liabilities than assets.

 

Apart from individuals, even corporations can also be considered for Bankruptcy. These businesses can be assigned into bankruptcy at the sole discretion of their shareholders or directors or petitioned into bankruptcy by a creditor.

Also, a person must be a Canadian Resident having a registered business here or have a property in Canada in order to be considered as an Insolvent.

Learn about Asset Protection Tips in Edmonton, Alberta.

What is the role of a Trustee?

Only a Licensed Insolvency Trustee can administer a bankruptcy in Canada. These professionals are federally licensed and follow a stringent code of ethics to mediate any dispute. Also, the cost of dealing with a Trustee is lesser compared to that of independent consultants as Trustees fee are regulated by the government.

Two main roles of a Trustee:

1. To sell Debtor’s assets
2. To recover and distribute money to Creditors at the end.

 

Apart from this a Trustee can also act as a debt consultant and can :

• Provide debt counseling
• Prepare proposals for creditors
• Negotiate settlements

 

Length of Bankruptcy

There are several factors that affect the length of bankruptcy in Alberta, yet most bankruptcy charges are for a minimum of nine months, except in cases where it is extended on court orders. In other cases, if your income is higher than the limit set by the government, the length of bankruptcy can be extended.

Since bankruptcy laws are confusing, you might be willing to take an expert advice to file your case. Our trusted and experienced Bankruptcy lawyers at Right Legal can help you with advice on your case.

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