Stop the Collection Process
Bankruptcy and consumer proposals are legal processes that provide relief from debt. To file for bankruptcy, a debtor must owe $1,000 and be unable to pay their debts as they become due. All assets vest (belong) to the Trustee for the general benefit of the creditors. A consumer proposal is available to those debtors (individuals) that owe less than $250,000, excluding residential mortgage, and can complete the terms of the proposal within five years. Assets do not vest (belong) to the Administrator. Either option must be filed through a processional, such as Fox-Miles & Associates Inc. Licensed Insolvency Trustee in Edmonton.
The personal bankruptcy process is a minimum of nine months, whereas the consumer proposal terms can extend up to five years. Either process initiates a “Stay of Proceedings,” which stops the collection process, with exception to secured creditors. Section 178 of the Bankruptcy and Insolvency Act lists debts that “survive” bankruptcy which include but are not limited to: court fines, alimony, child maintenance, debts arising from fraud, embezzlement, misappropriation, and student loans (if you have been a student in the last seven years). For information on “surviving” debts, contact us at 780-444-3939.
Depending on your financial situation, the following options are available to you:
In Alberta, the following items are exempt from seizure:
Effects on Your Credit Rating
Filing a bankruptcy or a proposal does affect your credit rating and is kept on your credit rating for a certain period of time, up to six years. Most individuals can get loans after bankruptcy, providing they qualify for the loan according to the financial institutions’ qualifications.
Some financial institutions want to wait a period of time after the bankruptcy before considering granting unsecured loans to individuals.
Remember that you are rebuilding your credit rating if you are continuing to pay your house mortgage or car loan.
“Thanks for the help. It’s been seven years – debts are $0.00!” – J.B.
“The importance of good bookkeeping is paramount. It allows me to see where my company really is.” – A.C.
Living within My Means
“I make my remittances on time every time. I have learned not to spend my tax money on wants. I live within my means.” – N.C.
Going to Bat for Me
“It felt good to have someone protect me and go to bat for me.” – N.C.
Benefited from Your Expertise and Counsel
"I very much regret the brain defects that I am forced to ensure but so privileged to have gained your friendship and benefited from your expertise and counsel. I shall be honoured to recommend you and your most helpful personnel to any friends who might find themselves in similar straits to my own." – J.C.
Taken Stress off My Shoulders
"I just wanted to take this time to once again thank you for all your help over the past year. No words can describe the pressure and stress you have taken off my shoulders. I hope the day comes when I can thank you in person." – L.W.
Changing Our Lives
Hello Rhonda + Les,
"Thanks for changing our lives! Hope your February is filled with much joy and happiness!" – D.D.
A Learning Experience
"Les, just a note to say how much I appreciate you, and your time and patience with the process. What a journey…and learning experience. With thanks and appreciation" - Sincerely, J.M.