Bankruptcy in Alberta - Your online Guide

Welcome to BanruptcyinAlberta.com, your online guide to learning how to navigate through the process of Bankruptcy. Here you will learn about How to file for Bankruptcy, Misconceptions, Alternatives, as well as the Advantages and Disadvantages in doing so.

Bankruptcy by Definition for the Canadian

Bankruptcy is when you legally announce you have no means or capacity to pay your creditors. In some countries, both individuals and corporations can declare bankurptcy. In others, only individuals can. For creditors to try and recoup even just a portion of what is owed them, they may file a bankruptcy petition against the debtor. This is known as involuntary bankruptcy and leads to debt restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor. This is also known as voluntary bankruptcy.

In Canada, bankruptcy is enforced by federal law in the Bankruptcy and Insolvency Act and is applicable to both corporations and individuals. The office of the Superintendent of Bankruptcy, a federal agency, oversees all bankruptcy proceedings and ensures everything is conducted in an orderly manner.

Definition of bankruptcy in different countries

In Australia, the Bankruptcy Act 1966 (Commonwealth) is the legislation that governs bankruptcy. Only individuals can declare bankruptcy. Corporations need to go into liquidation or administration.

In the United Kingdom, bankruptcy (in a strict legal sense) relates only to individuals and partnerships. Companies and other corporations enter into differently-named legal insolvency procedures: liquidation and administration (administration order and administrative receivership). However, the term 'bankruptcy' is often used when referring to companies in the media and in general conversation. Bankruptcy in Scotland is referred to as sequestration.

In the United States, bankruptcy cases are placed under federal jurisdiction through the statute law governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.