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What to Expect

What to Expect When Filing for Bankruptcy in Calgary

What happens after the forms are signed and I become bankrupt?

Generally, a meeting of creditors is not necessary but there may be instances where such a meeting will be held.  Creditors or the Official Receiver may request one after filing bankruptcy. If a meeting of creditors is called, you must attend this meeting. You may also be required to go to the Official Receiver’s office to answer several questions under oath about your financial affairs.

When is a bankrupt discharged?

Almost always, there will be an automatic bankruptcy discharge for first-time bankrupts nine months after they became bankrupt unless they have surplus income.  If you have surplus income of more than $200 per month, your bankruptcy will be extended to 21 months in the case of a first bankruptcy.

How does bankruptcy affect employment?

For the most part, bankruptcy should not affect your employment. If there is a garnishee in place when you file bankruptcy, the Licensed Insolvency Trustee will need to notify your employer to stop the garnishee.

Are there any fees associated with filing bankruptcy?

Yes. There is a filing fee to be paid to the Superintendent of Bankruptcy. In addition, there are fees that will need to be paid to the Licensed Insolvency Trustee. Typically these fees are $200 per month for nine months.   In general, you will pay a monthly contribution to your bankruptcy or you will pay a surplus income payment based on your income.