We provide Bankruptcy, Consumer Proposal, and Counselling Services from our Calgary and Edmonton, Alberta Offices.
Bankruptcy Trustee Services
Bankruptcy is a legal process and is usually the last of the solutions offered when dealing with your financial circumstances. The amount you pay in a bankruptcy will depend on the value of non-exempt assets in your possession and the amount of your income, and whether or not it exceeds a certain established threshold.
Even if bankruptcy is not your choice in dealing with your debts, you should be aware of how a bankruptcy would work for you and be advised of all of your options. The Trustee will review this option during your free consultation. We serve all of Alberta through our Calgary and Edmonton offices.
A consumer proposal is not a bankruptcy but rather an offer of settlement to your unsecured creditors at less than face value of the debt owed. A consumer proposal offers a percentage of the amount owing to the creditors but something more than they would receive if you were to file for bankruptcy. A consumer proposal is traditionally paid out by way of a monthly payment over an agreed-upon term not exceeding 5 years.
A consumer proposal need only be accepted by the majority of your unsecured creditors by dollar value. Once accepted by the majority of your unsecured creditors, it is binding on the balance of the creditors not voting in favour of your consumer proposal.
Once your unsecured creditors have approved your consumer proposal, your payments remain the same for the duration of the consumer proposal. Accordingly, your payments to the consumer proposal are not affected by increases or decreases in your income as they may be in a bankruptcy. A consumer proposal does offer the flexibility of being able to be paid off in part, or in full, early with no penalties.
Consumer proposals can deal with debts of $250,000 or less, excluding the debt secured on your principal residence, such as a mortgage. If you have debts over this limit, another form of proposal can be filed.
The Trustee will review this option during your free consultation.
Personal Financial Counselling Services
As an integral part of the insolvency process in Canada, individuals who file a bankruptcy or a consumer proposal are required to attend two mandatory counselling sessions. These sessions are done one-on-one with the individual.
The first session deals with understanding credit, warning signs of financial difficulty, goal setting and budgeting.
The second session covers a recap of the first session, follow-up with the budgeting process, a review of the status of the bankruptcy or proposal proceedings, and information with respect to the credit bureau and how to go about improving your credit score once the formal proceedings are concluded.