Before you look into how to file for bankruptcy in Lethbridge, make sure you are certain bankruptcy is the best option for you.
Some people think the answer to that question is a simple matter of debt to income, but nothing could be further from the truth. That approach fails to consider the assets you own, which you might lose in bankruptcy.
Canadian bankruptcies are administered under the provisions of the Bankruptcy and Insolvency Act (BIA) which tries to be fair and equitable to both debtors and creditors. So while the BIA provides for exemptions which allow debtors to keep some of the things they own in bankruptcy, debtors with assets whose value is significantly above the exemptions will most likely be required to sell some of them to pay back their creditors.
Exemptions vary by province, so if you live in Lethbridge and you want to know what the exemption allowances would be for you, you need to consult with a bankruptcy trustee licensed in the Province of Alberta.
Filing for bankruptcy in Lethbridge, or anywhere in Canada for that matter, is not something you can do on your own. The BIA requires the filing process and the management and administration of personal bankruptcies to be handled by a licensed bankruptcy trustee.
So the first step in answering both the question of how to file for bankruptcy in Lethbridge and whether you should file for bankruptcy begins in the same place – with a meeting with an Alberta bankruptcy trustee.
Some Canadians do not know there is a legally binding alternative to personal bankruptcy that protects their assets from sale and seizure. That alternative is called a consumer proposal and a bankruptcy trustee can tell you if you qualify for one or if bankruptcy would be your better choice.
When you meet with a trustee they will prepare a detailed statement of your present financial condition. That statement will determine whether bankruptcy, a consumer proposal, or perhaps even another debt solution option, is best for you. The trustee will inform you of the costs and details of each option and advise you as to which might be best for you.
Once you have made your decision, the trustee prepares all the necessary paperwork for your signature. It is a good idea to give yourself a day or two to digest what you have learned in your meeting with the trustee. In many cases, this allows you to come up with additional questions you hadn’t thought of during the initial meeting.
Finally, once you’ve signed the declaration of personal bankruptcy, the trustee files it with the courts and you become officially “bankrupt.” At that point, all collection activity against you must stop.
In summary, if you live in Lethbridge you should meet with a bankruptcy trustee licensed in Alberta to begin the process of filing for personal bankruptcy. The trustee will review your financial situation and advise you if there are other options available. The trustee will fully explain what’s involved during bankruptcy and how much it will cost. Once you have signed the paperwork, the trustee files it and you are now protected under the bankruptcy laws.
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