Since very few Canadians think of personal bankruptcy as their first option for getting out of debt, it is not surprising that most don’t consider one of its major advantages – the duration of an Edmonton bankruptcy is shorter than any other structured debt solution.
If you enroll in a credit counseling solution or a debt settlement plan, it will take you 3 to 5 years to complete the program. You won’t be able to apply for credit until you successfully complete the plan.
If you have never declared bankruptcy before, you can get your discharge in 9 or 21 months, depending on your income.
If you are declaring personal bankruptcy for the second or third time, you will remain in bankruptcy for 24 or 36 months, depending on income.
The government establishes a threshold living allowance by family size. If your total monthly income exceeds that threshold by more than $200, the excess is considered surplus income. A percentage of that must go towards creditor repayment.
If you search the Internet to get an idea whether you might have surplus income and how much of it you would lose in an Edmonton bankruptcy, you will never get an exact answer. You can get a rough idea, but to get exact figures you need to come and see us or any licensed trustee in Edmonton.
To get an idea how complex the calculation can be, go to the Office of the Superintendent of Bankruptcy (OSB) website and look up Directive 11R. That directive sets the guidelines we use to determine what goes into the all important calculation of your monthly income. As an example, here is Paragraph 5, Section 3, from the Calculation heading of the Directive:
- (3) The family unit’s available monthly income is determined by subtracting from the family unit’s total monthly income the monthly non-discretionary expenses applicable to the personal and family situations of both the bankrupt and the bankrupt’s family unit:
- (a)child support payments;
- (b) spousal support payments;
- (c) child care expenses;
- (d) expenses associated with a medical condition;
- (e) Court-imposed fines or penalties that are in the process of being paid;
- (f) expenses permitted by the Income Tax Act (or similar provincial legislation) that are a condition of employment;
- (g) any other debt where a stay of proceedings has been lifted by the Court, and a recourse authorized; and
- (h) interest paid on debts that are not dischargeable in bankruptcy under paragraph 178(1)(g) of the Act.
We don’t charge for initial consultations, so if you want to spare yourself the job of trying to figure this out on your own, give us a call.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.
