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Bankruptcy Alberta – Duties While Bankrupt   arrow

A BANKRUPTCY PROVIDES IMMEDIATE PROTECTION FROM CREDITORS

When an individual files bankruptcy with a Trustee, the federal government assigns an estate number, and upon registration, the Bankrupt is provided with a Legal Stay of Proceedings suspending all creditors’ actions and protection against all lawsuits and collection activities by creditors.

EVERY BANKRUPTCY MUST PERFORM CERTAIN MANDATORY DUTIES

Once bankrupt, the Bankruptcy and Insolvency Act requires a person to participate in and perform certain duties in return for forgiveness of one’s debts. These duties are mandatory and must be satisfactorily performed before their debts are permanently forgiven and a person receives their discharge from bankruptcy.

If one does not perform or neglects their duties, they remain in bankruptcy and if these deficiencies are not corrected prior to their discharge application, their bankruptcy protection is canceled and their creditors’ rights are reinstated.

WHAT ARE ONE’S DUTIES IN A BANKRUPTCY

A Bankrupt must:

1. Disclose all non-exempt property to the Trustee;
2. Make themselves available and, if requested, attend a meeting of their creditors;
3. File Monthly Statements of Income and Expense throughout the period of bankruptcy;
4. Attend two financial counseling sessions;
5. Report, calculate and, depending on the number of people in one’s family, remit or
contribute a portion of one’s monthly income to their bankruptcy estate for distribution to
their creditors;
6. Assemble and remit all tax information so that the Trustee can file their taxes