Personal Bankruptcy Protection in Edmonton & Central/Northern Alberta

Bankruptcy Protection may seem scary and embarrassing to those who are facing deep financial pressures to repay unresolved debts. At A.C. Waring & Associates Inc., we can help you unravel your situation, examine alternatives, point out available options and advise you of your possible solutions. Should Bankruptcy Protection be the best solution for you, here are some frequently asked questions and answers.

How Do I Know If I Need to Consider Bankruptcy?

You need sound financial advice if you are overwhelmed and stressed about your personal or business financial situation. Are you unable to pay what you owe, living off of loans, credit cards or personal lines of credit, while your debt continues to increase? Are you incurring or worried about wage garnishees, payment demands, and foreclosure or utility cutoffs due to unpaid bills? These are all present or potential stressors that may demonstrate financial danger signals in your life.

Regardless of how the debt was incurred, the reality is, you cannot repay the spiraling debt load.

How Do I Know I’m at a Personal Breaking Point?

Are you overwhelmed, embarrassed, stressed out, frequently angry or feeling down about your debt? Are you experiencing:

  • Difficulty sleeping, anxiety, poor eating habits, or depression?
  • Anger and/or anxiety over not knowing what to do or who to ask for the 'right' advice?
  • Fear of “losing” it all, “hiding” debts, or avoiding others?
  • Scared of having to call a professional to ask for help? Feel embarrassed or fear a stigma of dealing with the possible outcomes of resolving your situation, even though you can discuss them discretely?

What Caused this Debt Crisis?

Many individuals struggle with repaying their debts. Here at A.C. Waring & Associates Inc., we realize some conditions may be beyond your control and can lead you deeper into debt. These circumstances might include:

  • Losing a job, marital separation, divorce, becoming ill, gambling, needing costly medications not covered by benefits, natural disasters not covered by insurance and investment losses.
  • Marriage to a spouse already carrying debt overload and/or living with large wedding expense obligations.
  • Shopping addictions: sometimes needs and wants get blurred when we feel we “have to have it.”
  • Co-signing a loan for a friend or relative who is not financially stable and you wind up having to pay for the loan.
  • Making minimum credit card payments instead of paying full amounts each month.

Other times, a combination of internal and external circumstances create monetary challenges. Buying a home with a large mortgage, expecting a baby, buying a new car, or losing your job can all lead to increased debt. Many of you will also have financial dependents to care for such as children, your spouse, or elderly parents who are having financial difficulty. We understand these things happen.

When it comes to getting debt help, it does not matter whether a situation beyond your control brought you into financial hardship or if your problems arose from how your finances were handled. The professionals at A.C. Waring & Associates Inc. can talk to you about the alternatives you have available and can suggest various solutions that work for you.

Who Turns to a Bankruptcy Trustee?

Financial hardship can come at any time. Most people turn to a trustee when creditors call their loans in, credit card companies no longer allow more credit, utility companies threaten cable, electric or gas discontinuation, or businesses cannot meet payroll or operational payments.

How Can the Edmonton Bankruptcy Trustees at A.C. Waring & Associates Inc. Help Me?

A bankruptcy trustee takes the burden away from you. No more creditor calls, collection notices, foreclosure notices, repossessions or debt-collection suits. You simply give our name or number to a collection agency or CRA to contact us as your bankruptcy trustee and we will take care of the rest. We are federally licensed and can act on your behalf to derive the best financial solution for your circumstances. We will review your entire financial situation and help you understand what options are available. We can help you obtain immediate financial direction, counselling, and situation-changing debt decisions. We are professionals in debt management, regulated through the Bankruptcy and Insolvency Act.

What if I’m too Embarrassed to Ask for Help?

You are not alone in your financial predicament and our consultation is strictly confidential. More people than you think are, or have been, in a financial crisis situation. We have served thousands of debtors over the years, and our staff is highly sensitive to the difficult challenges faced by those in need every day. The risk of not obtaining professional help may include foreclosure, law suits, or a formal garnishee of wages by creditors.

The other risk of not getting professional help to solve your indebtedness includes running out of money, even if you are working three jobs. Get professional assistance now.

What if I Can’t Come to Your Office?

A.C. Waring & Associates Inc. offers a free consultation, whether over the phone or in person. You can call us at 1-800-463-3328 from anywhere in Alberta or 780-424-9944 within the Edmonton Region. We understand that taking a step in contacting us may be very difficult to do. We are here to help and will advise you to the best of our ability. If you cannot visit us due to hospitalization, hospice or long-term care, incarceration or other unique circumstances, we can arrange personal consultations at your site.

Can A.C. Waring & Associates Inc. Get Immediate Financial Relief for Me?

The first step in obtaining assistance is to make contact. As professionals in the field, we can provide you the best source of information about your options. We handle debt stress situations daily. Each case is evaluated on an individual basis whether this is for debt repayment planning, credit counselling, discussions about orderly payment of debt, consumer or business proposals, or about bankruptcy protection. Once the problem has been determined, we can assess your options and discuss applicable solutions. Call for an appointment or drop in and see us. Visit us at First Edmonton Place in downtown Edmonton, Monday to Friday between 8:30 AM – 5:00 PM or call us anytime for a free consultation.

If I Choose Bankruptcy, Will I Get Rid of All of My Debts?

There are some debts that you are responsible for despite bankruptcy, including secured debt (only if the asset is kept), child and spousal support payments and arrears, student loans less than 7 years from the last day of attendance, court ordered fines, and debts from fraudulent activities.

If I Choose Bankruptcy, How Much Will it Cost?

Costs are federally regulated. Costs are individual to each situation including family size, assets and income.

Is it True That not Everyone Can Qualify for Bankruptcy?

Bankruptcy is one option for those who are unable to repay their debts as they come due. The factors to assess in determining whether bankruptcy is the best option include your income and assets. Depending on the size of your family, you are allowed to earn a certain amount of income per month, set by the federal government. Also, you are allowed to keep a certain amount of equity in assets like your home, vehicle, household goods and furniture, tools, RRSPs, farming equipment and certain excess income. If you earn too much or have too much equity in your home or other assets, you may have to pay more and/or extend the time you spend in bankruptcy repaying your creditors. In this situation, we recommend doing a Consumer Proposal.

If I Choose Bankruptcy, Will My Job Be Affected?

Bankruptcy can affect your ability to work in certain jobs or industries especially if you are licensed or bonded. Your trustee will talk to you about other alternatives that may be open to you.

If I Choose Bankruptcy, How Will My Credit Report At Equifax And Trans Union Be Affected?

Any negative situation with creditors can affect your credit rating. Often credit ratings are already at their lowest before people seek debt relief. Credit worthiness is based on your creditors’ experience with you in your past irrespective of bankruptcy. Having a credit card delinquent for 120 or more days could terminate your ability to get credit from anyone else. The majority of people going bankrupt already have derogatory information in the Credit Bureau. Any derogatory information on your Credit Bureau, by provincial regulation, remains in place at the Credit Bureau for 6 years even if you pay the debt off.

Bankruptcy affects your credit rating for at least 6 years after you've completed the bankruptcy process. A first bankruptcy remains on your record at Equifax and Trans Union for 6 to 7 years from the date of your discharge. A second bankruptcy remains on your record for 14 years from the date of your last discharge.

How Long Can I Expect to Be in Bankruptcy?

Nine months is the minimum length of time most individuals go through to be eligible for a discharge of bankruptcy. Bankruptcy can be extended beyond nine months if the court orders an extension. Those with incomes significantly over the income guidelines will be in bankruptcy for 21 months. Other factors may include whether or not this is not your first bankruptcy, or if you have failed to complete one or more of your duties in bankruptcy, and/or if your discharge is opposed by a creditor, trustee or the Superintendent of Bankruptcy, which occurs occasionally.

If I Choose Bankruptcy, How Do I Start Filing?

Call us. Once you have discussed all your options and have decided to file for Bankruptcy, we can prepare your information for the process. Create a list of your income, assets, current and past debts, and transfers of funds or property as you will need to file a sworn financial statement. Keep your house and car loan payments current if you intend to maintain these assets after filing for bankruptcy. If you intend to keep your condo, it is a mistake to let condo fees fall into arrears.

Useful Terminology

Debt Repayment Plans
These are plans sculpted between you and your credit counsellor. These are arrangements to repay debt based on what you can afford and to advise you of other applicable options. Typically this decision is made in the beginning stages of debt management to help you get your finances on track.

Bankruptcy
Bankruptcy is a legal process you can enter if you have insufficient, non-exempt assets to pay your debts. In bankruptcy, the assets of a debtor (business or individual) are distributed among his or her creditors and the unpaid balance of the liabilities held are relieved. The bankrupt (or insolvent) is typically the initiator of the proceedings.

Consumer Proposal
A Consumer Proposal (or Business Proposal in the case of a business) is an arrangement formally negotiated with creditors. As your consumer proposal administrator, the bankruptcy trustee obtains a legally binding agreement with creditors on your behalf so that you can pay the debt owed (at a portion of the original amount owed) and your creditors agree to forgive the balance.

Debt Consolidation
Debt consolidation is the act of combining your loans or liabilities into a single account which is used to pay off the individual debts, usually involving another loan. A.C. Waring & Associates Inc., discusses Debt Consolidation as the consolidation of present debts. Not incurring more debt. This alternative pools your present debts into one monthly payment to settle the debt over time.

The trustee negotiates this with creditors officially. This method often results in a great reduction of the original amount owed. This then becomes a Consumer Proposal.

A.C. Waring & Associates

First Edmonton Place, 410-10665 Jasper Ave NW, Edmonton, AB, T5J 3S9|
Main: 780-424-9944 | After Hours: 780-423-3328 | Toll Free: 800-463-3328
 
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A.C. Waring & Associates is your trusted Edmonton-based regional bankruptcy trustee and debt solutions company. We specialize in debt solutions for personal or business matters, including debt and credit counselling, debt consolidation, consumer proposals, bankruptcy proceedings and other debt help solutions. If you are overwhelmed by debt and need solutions, A.C. Waring & Associates will help you find the path to a debt-free life. We proudly offer services to Northern Alberta communities as far as Grande Prairie, Fort McMurray and the surrounding areas. Contact us today for a free consultation at 780-424-9944 or toll-free at 1-800-463-3328.