Who may file for personal bankruptcy?
To be eligible to file for personal bankruptcy in Edmonton, you must meet the requirements set out in the Bankruptcy and Insolvency Act (BIA). The BIA first specifies that to be eligible to file for bankruptcy you must first meet all of these three criteria:
- Not currently in bankruptcy;
- Reside in Canada, carry on business in Canada or own property that is located in Canada
- Have valid debts of at least $1000;
If you fulfill the above requirements you have met the first part of the test. The second part of the test outlines an additional three requirements, of which you must satisfy one:
- Not able to meet your normal financial commitments as they become due;
- Have stopped paying your normal monthly obligations bills as they normally become due; or
- The total value of your debts exceeds the total fair market value of your property.
If you can meet all three of the first set of requirements and one of the second set, you are technically eligible to file for bankruptcy. However, just because you are eligible to file for a bankruptcy doesn’t mean that it is the best course of action. There are many aspects of your financial situation that must be considered in depth to determine whether or not the filing of an assignment in bankruptcy will be beneficial. For this reason it is essential that you meet with a licensed trustee and together review your monthly cash flow, the nature of your debts, and your employment situation to determine if a bankruptcy will provide you the relief you seek.
Like most trustees, our office offers a free, no obligation first interview, where we will discuss your unique situation and outline the options that will best meet your needs.