A Bankruptcy Overview – General Guidance
Bankruptcy. The term often brings feelings of humiliation to those in financial distress. It is a reminder that choices and circumstances have affected a person in such a way that they can no longer pay their debts. They may struggle to pay for everyday expenditures such as housing, food, and clothing. They may feel they have hit rock bottom with nowhere to turn. The good news is that while being bankrupt is not an ideal situation, it can provide the relief needed to pick up the pieces if it is the best choice for your circumstances.
Filing for bankruptcy may give you a renewed lease on life. It gives you a fresh start. Consulting with a Licensed Insolvency Trustee through A.C. Waring & Associates Inc will help you determine several alternative debt solutions that may be applicable to your situation.
Bankruptcy for the First Time
Many first-time bankrupts are overwhelmed with their situation. If you are facing the possibility of having to file for bankruptcy protection, here are some of the basics to consider:
- The process is governed by the federal Bankruptcy and Insolvency Act. It is possible that a first-time filer usually receives a discharge of bankruptcy within 9
- You must meet the minimum general criteria. You must be a resident of Canada, unable to pay your bills when they are due, and owe more than $1,000.
- You must assign your exempt assets to a Licensed Insolvency Trustee. This includes all assets outside of specific exceptions as prescribed by law.
- There are duties you must perform during the process. These include:
- Attending a meeting of creditors if one is requested
- Providing the Trustee with proof of income each month
- Making payments to the trustee of any surplus income
- Attending two credit counselling sessions that focus on budgeting and money management skills
- Following the instructions of the Trustee
Who Should File for Bankruptcy?
It can be difficult to determine if you should file for bankruptcy protection on your own. We recommend taking advantage of a free consultation with a Licensed Insolvency Trustee at A.C. Waring & Associates Inc so that a professional can assess your situation and provide you with the right information and tools to inform your decision. Every person and situation is different, but there are some general indicators that it might be the right decision for you:
- You have lost household income and there is no longer enough to pay debts
- You make your payments, but the debt is not going down, or there are too many to keep up with
- You depend on credit to make everyday purchases, for example, using a credit card to buy groceries or gas
- The financial strain is affecting your health and sleep
- No one will extend you any more credit
Debt Overload and a Bankruptcy Declaration Creates:
- Legal protection from your creditors
- Elimination of most unsecured debts
- Debt Free® within 9-21 months as a first-time bankrupt
- Credit Report affected for a minimum of six years
- Some assets purchased may need to be returned/forfeited
Depending on your situation, when you speak with a Licensed Insolvency Trustee, they will ask you about your financial information including, but not limited to, creditor demands, personal or business taxes, debts owed, dependants and income in order to thoroughly assess your situation and take the time to explain the options available to your unique situation.
Some Alternatives to Debt Overload or Bankruptcy May Include:
- Debt and Credit counselling
- Debt Consolidation
- Debt repayment planning
- Bankruptcy Protection
- Creditor Negotiations
- Consumer Proposals
Knowing what option is best for you and your situation can be difficult to ascertain. Reach out for help by contacting an insolvency trustee and get the professional advice you need.
Alternatives to Bankruptcy Before Filing a Second (or Third) Time
Filing for bankruptcy for the first time can be unfortunate, but sometimes it occurs that a second, or even third time can occur. While it is possible to file a second time, there are differences to consider:
- You will remain bankrupt for at least 24 months. It could be up to 36 months if you have surplus income or fail to comply with terms.
- Your credit report may be impacted for up to 14 years after your discharge, instead of 6 years.
- Filing a third time will require attending a discharge hearing and explaining to a court registrar why you had to file The court registrar may extend the time period of your bankruptcy and will decide if and when a discharge will be issued.
Come to A.C. Waring & Associates Inc. for Debt Solutions Guidance in Edmonton
At A.C. Waring & Associates, Inc. we understand the stress and strain of financial problems. We will work with you to address your debt overload and the applicable debt solution applied to get you back on the path of better financial health.
For advice on dealing with your debt problems in the Edmonton and Central/Northern Alberta areas, schedule a free initial consultation with A.C. Waring & Associates Inc.
Call our office toll-free at 1-800-463-3328 or 780-424-9944 with your questions and concerns regarding debt management options.
Contact Us. We can help.
Our office is centrally located at:
First Edmonton Place
1665 Jasper Avenue
Arthur Waring BA, BComm, CIRP, LIT
Trustee in Bankruptcy
Licensed Insolvency Trustee