INSOLVENCY ARTICLES
What is a Bankruptcy?
A bankruptcy
is an option for individuals who have explored all other options and
need an honest chance to start over. It can also be an option for
businesses which need an orderly method to wind-down.
Bankruptcy
is a legal process, regulated by the Bankruptcy and Insolvency Act, and
is administered by a Trustee in Bankruptcy. The purpose of the Act for
individuals, is to permit an honest debtor to obtain a discharge or a
release from his or her debts. Sometimes this release is subject to
reasonable conditions.
Certain debts are not released by a bankruptcy. These include:
- Court fines
- Alimony and child support
- Fraud
- Certain student loans
- Bodily harm debts, if the harm was intentionally inflicted
Once
a declaration of all of your assets is made, you may be able to retain
a large portion of your assets. Any non-exempt assets are dealt with by
your Trustee and the proceeds are distributed amongst your creditors
according to the Act.
There are certain duties that you must
complete in order to obtain a discharge from your bankruptcy. These
duties will be discussed in an upcoming article. If you have questions,
do not hesitate to contact our office.
There is legislation
pending that may change some of the rules in a Bankruptcy situation. If
you are contemplating bankruptcy or any other option, you may wish to
contact a Trustee to seek professional advice.
Contact Information
Donna Carson,
CGA, CIRP, Trustee is a Senior Vice President with Meyers Norris Penny
Limited in Calgary, AB. For more information, please call Donna at
403.538.3187. Consultation calls and meetings are free and
confidential.
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