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As lawyers with experience in bankruptcy law, we represent individuals and corporations on all sides, including debtors, creditors, and licensed insolvency trustees. We have extensive experience in proceedings under the Companies Creditors Arrangement Act (CCAA) and the Bankruptcy and Insolvency Act (BIA).
Edmonton’s Bankruptcy Law Firm
When a corporation or individual is facing insolvency and bankruptcy, it can be a confusing and difficult process. Our team specializes in navigating our clients through the process of filing for bankruptcy or dealing with insolvency using other tactics.
Filing for Individual Bankruptcy
As an individual, it can be overwhelming to try to understand Canadian personal bankruptcy laws. You may be unsure whether filing for bankruptcy is the right choice or if there are other options.
Our experienced team will guide you through the entire process, from clearly outlining your legal obligations to helping you determine whether bankruptcy is the right move.
Bankruptcy might seem like the best way to get a fresh start and absolve you of debts. However, it comes with consequences.
What are the downsides of declaring personal bankruptcy?
- Not all debts will disappear. Some debts, like child support payments or money owed to a victim in a criminal case, will still be your responsibility even if you declare bankruptcy.
- Your credit score will be affected. Seeing a declaration of bankruptcy on your credit score will affect your ability to secure loans. While some lenders will still work with you, many will deny you or create more aggressive terms.
- Your filings will be public. Anyone, including media or potential employers, would have the ability to look up your financial filings. They would then see that you had filed for bankruptcy.
- You can’t be a director of a corporation until you are discharged. This may take years. If you’re at director level in your career, this may be a blow that is difficult to come back from.
You should consider several important factors before choosing to file for bankruptcy. Our Bankruptcy team ensures you have all the knowledge you need to make an informed decision. Your financial future can be a good one if you take the right steps early. Contact us today to discuss your options.
Receiving a Discharge from Personal Bankruptcy
Many of our clients have already filed for bankruptcy and need help in receiving a discharge. Sometimes Canadian Revenue Agency, a creditor, or an insolvency trustee objects to our client’s request to no longer be in legal bankruptcy. There may also be a dispute with the trustee over completion of duties required by the Bankruptcy Act.
If you are struggling with next steps now that you’ve filed for bankruptcy or are unsure how to fulfill the terms of your bankruptcy, contact our bankruptcy team. We’ll help you understand and complete your legal duties and mediate disputes with involved parties. Together, we’ll navigate the winding road back from bankruptcy.
Corporations that file for bankruptcy cannot continue to operate. Essentially, bankruptcy serves as an end to the life of a company.
There are a variety of reasons for why a company might need to file for bankruptcy. Often, economic factors have a sudden and dramatic effect on receivables. If a corporation doesn’t have a sufficient buffer for operating costs, even reducing staff and other expenses can’t be done in time.
Corporate bankruptcy involves more players than an individual filing. Often shareholders, employees, investors and lenders are all affected. For example, employees may wonder if they need to come into work while bankruptcy proceedings are in progress or how they will be paid.
Working with a comprehensive legal team that specializes in business bankruptcy ensures that the rights of all affected parties are considered. Contact our team today; we provide actionable advice to anyone affected by a corporate bankruptcy.
We represent creditors seeking repayment on loans from an insolvent or bankrupt individual or corporation.
Even before bankruptcy occurs, creditors have legal recourse to collect on unpaid debts. Our lawyers can help with the following collections processes:
- Garnishing a debtor’s bank account
- Realizing on a debtor’s account
- Taking possession of a debtor’s home
- Discovering and accessing hidden assets
Whether you are a secured or unsecured creditor, our experienced team provides timely legal advice to ensure loans are repaid. Get in touch with us today to speak with a qualified creditor’s rights lawyer.
Licensed Insolvency Trustees
Licensed insolvency trustees are regulated by the government of Canada. They give advice to individuals and corporations who are struggling with debts they cannot repay.
Many corporations and individuals facing bankruptcy will work with insolvency trustees to help them navigate the legal proceedings. While an individual or corporation can file for bankruptcy without consulting a lawyer, in order to file for bankruptcy you need to consult a licensed insolvency trustee.
We not only represent debtors and creditors, but also licensed insolvency trustees. Often, these individuals require legal advice to help with negotiations with creditors and to ensure their clients are following all of Canada’s bankruptcy laws.
If you are a licensed insolvency trustee in need of some additional legal guidance, contact us today to discuss working together.
Frequently Asked Questions
Bankruptcy is the legal state in which an individual or corporation confirms that they cannot repay their outstanding debts. Bankruptcy allows for these debts to be forgiven under altered terms.
The purpose is to allow honest but unfortunate debtors to obtain a fresh start, while arranging for the orderly distribution of the debtor’s assets amongst their creditors. Once bankruptcy is filed, the assets of the individual or corporation are vested in a trustee in bankruptcy.
Insolvency is when your assets are worth less than your debts. It is the state that precedes filing for bankruptcy.
Receivership is when a receiver is appointed over a corporation’s assets by a creditor or the court. The receiver manages the finances of the corporation to ensure there is no fraud occurring, that as many debts are paid as possible, and that recovery is maximized for the creditors of the corporation. This is often enacted based on terms included in a lending agreement.
A secured creditor has a debtor who agrees that some or all of their assets (such as their house, vehicle) are pledged as “security” for the repayment of a loan. The secured creditor acquires a property interest in the assets (or collateral) and if the loan is not repaid, the secured creditor has the power to sell that property to repay the loan.
An unsecured creditor does not have interest in any of your property. Judgment creditors, or other creditors where there is not an agreement that your assets serve as security, are examples of unsecured creditors.