Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Restructuring and insolvency law in Edmonton deals with the legal processes and solutions available to financially distressed businesses and individuals. These laws help organizations and people address mounting debts, manage creditors, and, where possible, restructure their obligations to achieve financial stability. When restructuring is not viable, insolvency proceedings provide structured legal frameworks for winding down operations or personal affairs, while addressing creditor claims fairly and efficiently. In Edmonton, these processes are governed by Canadian federal legislation as well as certain provincial laws that outline the rights, obligations, and processes for debtors and creditors.
Financial distress can affect anyone, from business owners facing reduced revenues and mounting debts to individuals unable to meet personal financial obligations. Common situations where you may need legal help in restructuring and insolvency include:
A lawyer experienced in restructuring and insolvency can assess your financial situation, explain your rights and obligations, help you select the most appropriate legal process, and advocate on your behalf throughout complex legal or court proceedings.
Restructuring and insolvency in Edmonton, as part of Alberta and Canada at large, is governed by both federal and provincial regulations. Key federal statutes include:
Provincially, Alberta law impacts assets such as real estate and enforcement procedures for creditors, including the Civil Enforcement Act and related regulations. Local court systems, such as the Alberta Court of King’s Bench, often deal with bankruptcy and insolvency proceedings within Edmonton.
Laws restrict certain actions by creditors once insolvency proceedings are underway, and various forms of relief may be available to debtors (such as the automatic stay of proceedings). The law also sets out priorities for how funds are distributed among creditors, special protections for employees, and requirements for disclosure and reporting throughout the process.
Restructuring refers to processes that aim to reorganize debts and obligations so a business or individual can continue to operate and pay creditors over time. Insolvency usually refers to a legal state where debts cannot be paid as they become due, often leading to bankruptcy or receivership.
It is never too early to consult a lawyer if you feel overwhelmed by debt, are at risk of defaulting on payments, or have received legal notices from creditors. Early advice can create more options for resolving your financial issues.
When formal insolvency proceedings are started, most creditor enforcement actions (litigation, garnishments, repossessions) are automatically paused through what is called a stay of proceedings. This gives you breathing room to work out a solution.
A consumer proposal is a legally binding offer to pay creditors a portion of what is owed, or to extend repayment over a longer period. This is available for individuals who owe less than 250,000 Canadian dollars (excluding a mortgage on their principal residence).
No. Alberta law exempts certain assets from seizure in bankruptcy, such as basic household goods, personal items, a portion of personal equity in a home, and certain pensions and RRSPs.
For a first-time bankrupt with no surplus income, bankruptcy can be discharged in as little as nine months. The timeline can be longer for repeat bankruptcies or where surplus income exists.
Yes. Businesses may negotiate informal arrangements with creditors or use legal tools such as proposals under the BIA or the Companies’ Creditors Arrangement Act, which allow for continued operations while restructuring debts.
Employees are given a preferred status in the distribution of funds, up to certain limits, for wages and vacation pay accrued before insolvency. Some may lose their jobs if the business closes or downsizes.
Secured creditors have collateral backing their loans and are paid first from the sale of secured assets. Unsecured creditors (such as credit card issuers) are paid after secured creditors and may receive less, depending on available assets.
You can try to negotiate directly. However, legal and financial advisors can often achieve better outcomes, help you understand your rights, and ensure that any formal agreements are enforceable.
If you are facing a restructuring or insolvency situation in Edmonton, the following resources may be helpful:
If you are experiencing financial distress or are considering restructuring or insolvency, it is important to act quickly and seek professional advice. Here are steps to guide you:
Early and informed action can make a significant difference in the available solutions and their outcomes. If you are unsure where to begin, contact a legal professional for a confidential consultation.
