Personal Bankruptcy: What It Is and What You Should Know

You may have considered bankruptcy if you've been struggling with massive debt. There are various types of bankruptcy, but it should not be filed lightly. However, there are times when bankruptcy is the best (or only) option available. It would be best to understand what bankruptcy is, when and how to file, and more about declaring personal bankruptcy in Alberta.  

What Precisely Is Bankruptcy?

Alberta bankruptcy is a legal process that helps free an individual or entity from the financial obligation of debts owed. When individuals or businesses cannot pay their debts, they may file for bankruptcy. Depending on the individual's financial situation, various bankruptcies are available.

Debtors who file for bankruptcy have the opportunity to start over. In some cases, it's also an opportunity for creditors to recoup some debt. Depending on the type of bankruptcy filed, someone will meet with a judge to determine which debts can be discharged and which will require a new payment plan. 

How to Filing for Bankruptcy 

You're probably wondering how to file for personal bankruptcy law

now. Alberta bankruptcies are not as easy as you might think. As a result, the more you understand the filing process, the better off you'll be. Here are the steps that individuals and businesses must take to file for bankruptcy successfully. 

1. Gather and inventory system all of your financial records.  

The foremost step in declaring bankruptcy is to gather all of your financial records. These records should contain your debts, income, expenses, and assets. Compiling this list of records will assist you in better knowing your situation and being prepared for any requests made by the court.

2. Consult a lawyer. 

 Now is a good time if you haven't already found a bankruptcy lawyer. Failure to follow the proper bankruptcy procedure could impact the outcome of your case. It's risky to represent yourself in this way. Because judges are not permitted to give advice, hiring a lawyer can assist you in making the best decisions moving forward and completing the process smoothly.

3. Submit a bankruptcy petition. 

Your lawyer can assist you in completing all of the necessary paperwork for your case. An automatic stay is now in effect, and your creditors cannot sue you or garnish your wages. 

4. Your case will be assigned to a bankruptcy trustee. 

Following the acceptance of your petition, a bankruptcy trustee will schedule a meeting with your creditors. This meeting allows your creditors and the trustee to ask questions about your case. This meeting is mandatory for you to attend.

5. Your eligibility has been established.  

The trustee will determine your eligibility for filing after reviewing your paperwork.

6. Get a debt discharge for qualifying debts. 

Your debts will be discharged three to six months after filing for bankruptcy. Your debt has been discharged, and no payment is required. Your case will then be closed.

We can assist you in keeping your assets if you choose Bankruptcy Alberta. Call (587) 906-8959 to speak with one of our client intake representatives and find out what will happen if you file for bankruptcy right now! We can help you with the petitioning and filing procedures. We can even help you with debt restructuring through other bankruptcy filings with complex financial structures or extremely large debt loads.