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206, 5800 - 2nd Street S.W.
Calgary, Alberta, T2H 0H2
Tel: (403)252-1766
Fax: (403)640-0591
Infoline: (403)252-3481
Email: Calgary@Insolvency.net

PERSONAL BANKRUPTCY

Personal Bankruptcy is a legal process which provides an individual with protection from their creditors and immediate relief from most legal actions. It is intended to provide the debtor with the ability to start over by eliminating most, if not all, of his or her debts. It allows the creditors, through the Trustee, a means of liquidating the debtor's non-exempt assets for the benefit of the estate. Bankruptcy is not intended to be an easy way to escape debt obligations, but rather an action taken to relieve a burden of debt while eliminating the pressure of dealing with each individual creditor.

CONSUMER PROPOSALS?

The Bankruptcy and Insolvency Act allows the debtor to propose an arrangement to his creditors to reduce the amount of debt, extend the time to pay off the debt, or a combination of both. The actual terms of a proposal are only limited by the imagination of the person making it. The terms of the proposal must be completed in five years and must offer the creditors at least what they would be paid in a bankruptcy. Consumer proposals are aimed at those who do not have many debts or complicated financial affairs.

ORDERLY PAYMENT OF DEBT ?

The O.P.D. program is administered only in B.C., Alberta, Saskatchewan, Manitoba, P.E.I., and Nova Scotia. It is a program where consumers repay all of their debts in full over a period of time. Monthly payments are based on the debtor's ability to pay. There is a minimum criteria which must be met by the debtor in order to qualify for this consolidation program.

Under the Bankruptcy and Insolvency Act the Trustee can also act as a mediator between the debtor and his creditors and invoke a private agreement, usually in writing, which settles the debt either by partial or full payment.

CONCLUSION

If you are in a debt crisis you are not alone. There are alternatives and solutions to dealing with overwhelming debt. We have attempted to provide you with a brief outline of some of your options. We would be pleased to meet with you to discuss your personal situation more fully, outline possible specific solutions, and set you back on the road to success. Call for an appointment.