Bankruptcy Edmonton - Questions

Who can file bankruptcy or make a proposal in Edmonton?

You can file bankruptcy or make a proposal if:

• you are not presently in bankruptcy and;

• you owe at least $1,000 and;

• you are not able to meet your regular payments as they become due; or

• you would not be able to pay all of your debts if all of the assets you are not allowed to keep are sold.

Your company, partnership, or business may also file bankruptcy or make a proposal if it meets the above requirements.

You should be aware that any unsecured creditor to whom you owe more than $1,000 could try to force you into bankruptcy. This is called a petition in bankruptcy. In this case, the creditor must prove that you have committed an act of bankruptcy, such as not paying your bills as they came due. The court reviews the facts and, if the petition is allowed, issues a receiving order which places you in bankruptcy with a trustee selected by the petitioning creditor.

Most debts, but not:

• secured debts (eg. mortgage or car loan);

• child support, maintenance, alimony

• Court fines, penalties and traffic offences

• debts obtained by fraud or fraudulent misrepresentation

• student loans, for bankruptcy filings after July 7 2008, if less than seven years since leaving university or college

• civil claims arising from personal or sexual assualt

The bankruptcy fee in Edmonton is dependant on your particular circumstances. It will be explained to you by a trustee once your situation has been reviewed. All fees are set by the government and are the same for all trustees across Canada.

No, there are a number of ways to pay the fee, such as monthly payments or by having a third party pay the fee for you.

No, they may call you, but you should direct their questions to us.

Alberta Provincial law allows a person filing bankruptcy to keep the equity in a motor vehicle not exceeding $5,000.

Normally, all legal proceedings against you stop at the date of bankruptcy.

No, while you are in bankruptcy you are only responsible for paying your ongoing living expenses. All payments to any of your unsecured creditors stop.

No, that is your business.

Yes, you continue to receive your income and you can have a bank account if you wish.

Your credit cards must be given to the Trustee, except in certain, extremely rare cases.

That will depend on your earning and repayment ability and will be between the lender and you.

No, as long as you lived or carried on business in Canada in the last 12 months you may file bankruptcy.

Any "windfall" must be given to the Trustee to distribute to your creditors. If there is any money left over, it will be returned to you.

Yes, but it may be harder to get out of bankruptcy after the first time.

Depending on the type of plan you have, it may be protected from seizure by Provincial law. If not, it must be paid over to the Trustee to distribute to your creditors.

In Alberta, what you are entitled to keep is determined by the Civil Enforcement Act. In summary, you are generally able to keep the following property:

• Food required by you and your dependents during the next 12 months.
  
  

• Necessary clothing up to a value of $4,000
  
  

• Household furnishings and appliances to a value of $4, 000
  
  

• One motor vehicle not exceeding a value of $5, 000
  
  

• Medical and dental aids required by you and your dependents.
  
  

• Where you are a bona fide farmer and your principal source of livelihood is farming:  160 acres if your principal residence is located on that 160 acres and the 160 acres is part of your farm.
  
  

• The equity in your principal residence, including a mobile home, up to a value of $40,000. If you are a co-owner of the residence, the amount of the exemption is reduced to an amount that is proportionate to your ownership interest.
  
  

• Personal property (i.e., tools, equipment, books) that you require to earn income from your occupation up to a value of $10,000.
  
  

• Where your primary income is from farming operations, personal property that you require for the proper and efficient conduct of your farming operations for the next 12 months.

Federal Legislation also allows you to keep:

• cash surrender value of life insurance policies (including some R.R.S.P.'s) where the beneficiary named is the spouse, child, parent or grandchild.
  
  

• generally, pension plans.