What Are The Benefits Of Filing Bankruptcy?

When an individual declares bankruptcy, the debts are put on hold. All of the debtor's property save and accept for certain exemptions, are turned over to the Trustee who in turn sells that property and distributes those funds to the creditors. In Alberta, a bankrupt is allowed to keep certain assets which are not available for distribution to the creditors. A listing of these exempt assets is found in the "Frequently Asked Questions" section under: Will I Lose Everything? Also, when an individual files bankruptcy it puts a stop to any legal actions that may be under way. The debtor's unsecured creditors can no longer pursue him to recover the debt that is owed them, not withstanding a wage garnishee or a seizure of assets.