Bankruptcy Exemptions & Consumer Proposals in Alberta
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Bankruptcy exemptions in Alberta
When you find yourself struggling to pay your debts, there may come a point where bankruptcy seems like the only viable option.
Alberta has the highest rate of consumer debt in Canada, followed by Calgary and Edmonton and as a result, bankruptcies have increased by 13.5%.
There are many debt management options out there for Alberta residents such as debt consolidation, debt settlement and consumer proposals. However, if none of these options are suitable, then bankruptcy may be the right course of action.
If taking the bankruptcy route, there are certain exemptions that cannot be seized by debt collectors.
Harris & Partners is a specialist Licensed Insolvency Trustee with offices based across Canada, providing debt relief solutions to individuals and businesses struggling to manage their debt.
Contact us today for a free consultation with one of our licensed insolvency trustees and we’ll help you to build a stronger financial future.
How does a consumer proposal work in Alberta?
According to the Bankruptcy and Insolvency Act, a consumer proposal is a legally binding process whereby an agreement is made with creditors to negotiate a more manageable form of debt repayment.
Your repayment amount will primarily be determined by your assets and income and payments will be spread over a period of five years.
A consumer proposal can reduce the amount of debt you have to pay back to debt collectors and can be a great method of debt consolidation for those who cannot afford to pay back all of their debts.
If you are based in Alberta and want to find out more about the process of filing a consumer proposal, get in touch with us today.
Alberta bankruptcy exemptions
- Enough food to last for a period of 12 months.
- Clothing valued up to $4,000.
- Household furnishings and appliances valued up to $4,000.
- One motor vehicle valued up to $5,000.
- Personal property used to earn income that is valued up to $10,000.
- All medical and dental aids.
- Your principal residence if it is under $40,000. For co-homeowners, this amount can be reduced depending on how much you own of the home.
- RRSPs, RESPs and pensions.
- Some life insurance policies.
- Farm equipment needed for the next 12 months.
How can I find out more?
If you want to find out more about bankruptcy exemptions and consumer proposals in Alberta, please contact your local Licensed Insolvency Trustee for further information.