Best Bankruptcy Lawyers in St. Albert

About Bankruptcy Law in St. Albert, Canada

Bankruptcy is a legal process available in St. Albert, Alberta, which allows individuals or businesses who are unable to meet their financial obligations to obtain relief from their debts. The bankruptcy process is governed by federal legislation – the Bankruptcy and Insolvency Act (BIA) – but the process is administered locally with the help of Licensed Insolvency Trustees (LITs), lawyers, and the courts when necessary. Bankruptcy provides a fresh financial start for honest debtors, while ensuring fairness to creditors. The process covers a debtor’s assets, possible income contributions, and, upon completion, provides for a discharge from eligible debts.

Why You May Need a Lawyer

Although many aspects of bankruptcy are handled by Licensed Insolvency Trustees, you may need legal advice or representation in several situations including:

• Disputes about which assets you are allowed to keep during bankruptcy
• Challenging creditor claims or collection actions
• If you have complex financial affairs, such as significant business involvement or multiple properties
• Potential accusations of bankruptcy fraud or misconduct
• Legal concerns surrounding the impact of bankruptcy on co-signers or family members
• Disagreements with your LIT or issues during court proceedings
• To understand the alternatives to bankruptcy, such as Consumer Proposals or debt consolidation, and which option is right for you

Local Laws Overview

Bankruptcy law in St. Albert, Alberta, falls under the federal Bankruptcy and Insolvency Act, but there are important provincial and local considerations:

• Provincial Exemptions: Alberta law determines which assets you can keep during bankruptcy, including certain amounts of equity in your home, a vehicle, personal belongings, tools of the trade, and RRSPs (except for contributions made in the past 12 months).
• Court Jurisdiction: Bankruptcy proceedings may involve the Court of King’s Bench of Alberta, which has local jurisdiction in St. Albert and surrounding areas.
• Licensing: Only Licensed Insolvency Trustees regulated by the Office of the Superintendent of Bankruptcy can administer bankruptcies in St. Albert.
• Statute of Limitations: Alberta’s laws define how long creditors have to pursue debts prior to bankruptcy, which can be relevant to your situation.
• Local Support Services: Alberta offers credit counselling and debtor assistance programs that can be accessed as part of bankruptcy or as alternatives.

Frequently Asked Questions

What is bankruptcy and how does it work in St. Albert?

Bankruptcy is a legal process for people or businesses who are unable to pay their debts. In St. Albert, a Licensed Insolvency Trustee helps manage your assets, notify your creditors, and guide you toward a discharge from eligible debts after fulfilling certain obligations.

Will I lose everything if I file for bankruptcy in Alberta?

No. Alberta’s laws provide exemptions for certain assets such as basic household goods, personal items, some equity in your primary residence, one vehicle up to a set value, and most RRSPs except recent contributions.

How long does bankruptcy last in St. Albert?

For first-time bankruptcies, you may be eligible for an automatic discharge after 9 or 21 months, depending on whether you have surplus income. Repeat bankruptcies or those involving complicating factors may take longer.

Will bankruptcy affect my credit?

Yes, bankruptcy will appear on your credit report for at least six years after discharge (or longer for repeated bankruptcies), which can impact your ability to obtain credit during that period.

Are all debts eliminated by bankruptcy?

Most unsecured debts—like credit cards and unsecured loans—can be discharged, but some debts such as child and spousal support, student loans less than 7 years old, fines, and fraudulent debts are not eliminated.

Can I keep my house or car?

You may be able to keep your house or car if their value falls within Alberta’s exemption limits and you can continue making any required payments. Otherwise, assets above exemption limits may be sold to pay creditors.

Do I need a lawyer to file for bankruptcy?

You are not required to have a lawyer to file for bankruptcy, but legal advice is recommended if your situation is complex, involves disputes, or if you have concerns about your rights and obligations.

Who will know if I file for bankruptcy?

Your bankruptcy is a matter of public record, but it is not usually advertised except in cases involving large assets or businesses. Your creditors and the Office of the Superintendent of Bankruptcy will be notified, and your employer will only be informed if your income is involved.

Can bankruptcy stop wage garnishments and collection calls?

Yes, once bankruptcy is filed, most legal actions—including wage garnishments and collection efforts—must stop immediately, with some exceptions.

What are some alternatives to bankruptcy?

Alternatives include debt consolidation loans, informal arrangements with creditors, and regulated options like Consumer Proposals, all of which should be discussed with a licensed professional before filing for bankruptcy.

Additional Resources

If you are considering bankruptcy or need more information, the following resources and organizations are available in St. Albert and across Alberta:

• Licensed Insolvency Trustees in St. Albert: Professional trustees offer free consultations and are authorized to administer bankruptcies.
• Office of the Superintendent of Bankruptcy Canada: Oversees the bankruptcy process and provides public information.
• Alberta Courts – Court of King’s Bench: Handles legal matters related to bankruptcy and insolvency.
• Money Mentors: A non-profit organization offering credit counselling and debt repayment advice across Alberta.
• Legal Aid Alberta: Assists qualified individuals needing legal advice or representation in bankruptcy matters.
• Canadian Bar Association – Alberta Branch: Can help you find a local bankruptcy lawyer.

Next Steps

If you are struggling with debt and considering bankruptcy in St. Albert:

1. Gather your financial information, including debts, assets, and income sources.
2. Contact a Licensed Insolvency Trustee for a free initial consultation. They will explain your options and the process.
3. If your situation is complicated or you have legal questions, reach out to a bankruptcy lawyer in St. Albert. Many offer initial consultations to assess your needs.
4. Explore all possible alternatives, such as Consumer Proposals or credit counselling, before making a final decision.
5. Take time to understand your rights and obligations under both federal and Alberta law.
6. Document all correspondence and steps taken, as this may help protect your interests throughout the process.