Frequently asked questions

Do I Qualify For Bankruptcy?
To qualify you must:
- Owe at least $1000.00;
- Be unable to meet required payments as they become due; or
- Own insufficient property to pay all of your debts

Will I Lose Everything?
No. The Bankruptcy and Insolvency Act and the Civil Enforcement Act in Alberta exclude certain assets from seizure:
- Necessary clothing and personal effects to a liquidation value of $4000.00;
- Household furnishings and appliances to a liquidation value of $4000.00;
- One car or truck to a maximum value (or equity therein) of $5000.00
- Tools of the trade used to earn your principle source of income to a maximum value (or equity therein) of $10,000.00;
- $40,000.00 equity in your principal residence (including a mobile home) or your pro-rata share thereof;
- Medical and Dental aids;
- Certain Life Insurance Policies;
- Certain Pensions and RRSP's;
- Other special exemptions for farmers.

How Much Does It Cost?
The cost of administering a bankruptcy depends on a variety of factors, including the complexity of your affairs. The Superintendent of Bankruptcy regulates the fees charged by Trustees. At Cameron-Okolita Inc. we can make the bankruptcy process more affordable and tailor your fee payment schedule to meet your financial situation.

Do Any Debts Survive Bankruptcy?
Yes. Certain debts are not eliminated by your discharge from bankruptcy. For Example:
- Fines or penalties imposed by the courts;
- Alimony, maintenance or support payments;
- Debts obtained by fraud or misrepresentation
- Certain Student Loans
In most cases, bankruptcy does not prevent a secured creditor such as a Bank, Credit Union or Finance Company from realizing on any assets which you have pledged as security for a loan. House mortgages are unaffected if monthly payments are current. Cars or other chattels if pledged as security, can be repossessed at the option of the secured creditor. Most Financial Institutions will however, allow you to keep your property if your payments are current.

Do I Have To List All My Debts?
Yes. Bankruptcy can not be applied selectively. You are required to list all of your debts, regardless of the source, even those owing to friends and relatives. If you intentionally fail to disclose debts, you will be liable for the dividend otherwise payable to that creditor. If one feels compulsion to pay back a friend or relative, or any other creditor, there are no restrictions on doing so after you have obtained your discharge.

How Long Will I Be Bankrupt?
If you have not been bankrupt before, you will normally be discharged nine months after your bankruptcy date. The discharge will be automatic unless you do not live up to your obligations or fail to perform the duties imposed upon you by the Bankruptcy and Insolvency Act. A creditor can also object to your discharge, depending on the circumstances surrounding the origin of the debt. If you have been bankrupt before, you are not eligible for an automatic discharge, and the Trustee must apply to Court to obtain your discharge.

Who Will Know About My Bankruptcy?
Once you have made an assignment in bankruptcy, the Trustee is required to notify all of your creditors. In addition, information regarding your bankruptcy will be kept on file by credit reporting agencies, Canada Customs and Revenue Agency and the Superintendent of Bankruptcy.