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The Bankruptcy and Insolvency Act (BIA) governs bankruptcy law in Edmonton, Canada. When someone can't afford to pay their debts, bankruptcy provides a legal process to obtain financial relief. Bankruptcy isn't just about getting out of debt, but also involves surrendering a significant portion of your property to your creditors. Also, it's essential to note that there are certain debts that bankruptcy cannot erase such as child or spousal support arrears, student loans (if you stopped being a student less than seven years ago), and fines or penalties from the court.
In many cases, declaring bankruptcy can be a complicated process that involves intricate laws and regulations. Therefore, people often require legal help to fill out paperwork, appear in court, navigate through your debts, and argue on your behalf if a dispute arises with your creditors. A lawyer can also help explain what debts can and cannot be discharged, and whether bankruptcy is the most suitable option for you based on your circumstances.
In Edmonton, the Alberta provincial exemption laws dictate the assets you can keep when filing for bankruptcy. These assets usually include necessary clothing, certain household furniture, and appliances, some equity in a motor vehicle, and tools of your trade. Furthermore, the local laws require taking two financial counselling sessions and cooperating with the Trustee during the bankruptcy process. Failing to meet these obligations can result in legal penalties.
Whether you can keep your house depends on the equity in your home. If your home's equity exceeds the Alberta homestead exemption amount, your Trustee may sell the house to repay your debts.
In most cases, a first-time bankruptcy will remain on your credit report for six years after you've been discharged.
Student loans cannot be included in a bankruptcy discharge if you were a student less than seven years ago. If it's been seven or more years since you were a student, the loans can be included.
No. While bankruptcy can eliminate most of your debts, some debts, such as child or spousal support arrears, certain student loans, and court-imposed fines, cannot be discharged.
While you can technically file for bankruptcy on your own, the process is complicated and arduous. Having a lawyer can streamline the procedure and ensure you don't miss any crucial steps or details.
The Office of the Superintendent of Bankruptcy Canada (OSB) is a helpful resource that provides valuable information about bankruptcy. You may also want to visit the official Alberta government website or the Edmonton Community Legal Centre for additional resources on bankruptcy.
If you need legal assistance in bankruptcy, the first step is to find and consult with a bankruptcy lawyer. They can help you understand the complex legal nature of bankruptcy, your options, and how best to proceed. The lawyer will also guide you through the paperwork and legal proceedings if you decide to declare bankruptcy.
