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Bankruptcy Trustee Services in Alberta: Your Path to Debt Relief
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Introduction:
When debt becomes unmanageable and other options have been exhausted, bankruptcy offers a way to reset and rebuild. It legally discharges most unsecured debts, providing immediate protection from creditor actions like wage garnishments and lawsuits. At SCB Debt Solutions, we understand that this step can feel daunting, but our team is here to guide you with care and professionalism.
How to File for Bankruptcy in Alberta
Filing for bankruptcy in Alberta can feel overwhelming, but with the guidance of a Licensed Insolvency Trustee, the process is straightforward and designed to protect you. Here’s what you need to know:
Step 1: Assess Your Financial Situation
Before filing, a licensed bankruptcy trustee will review your debts, income, and assets. This helps determine if bankruptcy is the best solution or if alternatives like a consumer proposal might work better
Step 2: Meet with a Licensed Insolvency Trustee
Bankruptcy in Alberta must be filed through a federally licensed insolvency trustee. During your meeting, you’ll discuss your financial history, obligations, and the steps involved in the bankruptcy process.
Step 3: Complete Your Paperwork
Your trustee will prepare the necessary documents, including your Statement of Affairs, which lists your debts, assets, income, and expenses. Accuracy is critical to ensure a smooth process.
Step 4: File Your Bankruptcy
Once the documents are submitted, your bankruptcy is legally in effect. Creditors are notified, and collection actions, including lawsuits and wage garnishments, must stop immediately.
Step 5: Attend Mandatory Counselling Sessions
Alberta law requires two financial counselling sessions. These sessions help you manage money, avoid future debt, and develop strategies for rebuilding your credit.
Step 6: Discharge and Rebuilding
After meeting all requirements, typically 9 to 21 months for first-time bankruptcies, you’ll receive a discharge, releasing you from most unsecured debts. Your trustee will also guide you on how to rebuild your financial future responsibly.
Filing for bankruptcy in Alberta is not just about eliminating debt; it’s about gaining a fresh start with professional support to help you move forward confidently.
What Bankruptcy Means for You?
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Legally eliminate most unsecured debts, including credit cards, personal loans, and some medical bills.
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Immediately stop creditor actions: no more wage garnishments, lawsuits, or collection calls.
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Get protected under Canadian bankruptcy law, allowing you to rebuild your financial future
Who Can Qualify to File for Bankruptcy?
You may qualify to file for bankruptcy in Alberta if you:
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Owe more than you can pay (usually debts over $1,000)
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Are an individual struggling with personal debt
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Have explored other debt solutions without success
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Are willing to comply with legal requirements, including submitting your financial information and attending mandatory counselling
A licensed bankruptcy trustee can assess your situation and guide you on whether bankruptcy is the right option to regain financial freedom.
How Long Does a Bankruptcy Last?
The Bankruptcy and Insolvency Act provides for an automatic absolute discharge for most first-time bankrupts after 9 to 21 months, depending on income level. For a second time bankrupt, the automatic discharge is available after 24 to 36 months. An average consumer bankruptcy takes from 9 to 36 months to reach the discharge state. It formally ends when you receive a Certificate of Discharge from the Licensed Insolvency Trustee or an Absolute Order of Discharge from the Court.
Mandatory Counselling Sessions During Bankruptcy
Bankruptcy regulations require that you take part in a program of counselling intended to address issues related to the bankruptcy. There are two mandatory counselling sessions:
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First-stage counselling occurs within 60 days of the date of Bankruptcy and covers money management, spending and shopping habits, warning signs of financial difficulties and obtaining and using credit.
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Second-stage counselling is held between 30 days and 210 days after completing the first-stage session and covers causes of bankruptcy, follow-up on targets and goals in the first-stage counselling, and referrals, if necessary.
How SCB Debt Solutions Help You
We begin with a private conversation to review your financial situation. Together, we’ll decide whether bankruptcy is the right path or if there are viable alternatives.
You won’t be navigating this alone. We’ll explain your obligations, walk you through the paperwork, and make sure you understand each step.
Our licensed Insolvency Trustee will prepare and file your case, submit your Statement of Affairs, and handle all necessary documentation on your behalf.
Once eligible, you’ll receive a formal discharge, ending most of your debts. We also guide you through rebuilding credit, understanding what debts (if any) survive bankruptcy, and regaining financial stability.
FAQ’S related to Bankruptcy in Alberta
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I have the ability now to save for my retirement. The most surprising things about this experience were the amount of debt that was eliminated, the hope I now have and, the help and support I received from the amazing people at SCB. They advise you and help you get through this. THANK YOU SCB
Eleanore A.
Client Review
Senga and Staff at Smith Cageorge Bailey have made it so easy for me to walk through the door. They were very professional and understanding of my situation. I felt completely at ease and would recommend them to my family and friends.
Liana S.
Client Review
Talk about life changing. In 2013 I went to SCB looking for guidance with my finances. I was feeling defeated and embarrassed on how I let myself down in debt. Senga Bailey instantly made me comfortable and guided me through the process of bankruptcy.
Joey K.
Client Review
Real financial solutions for real people
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