How long does a bankruptcy last?

The length of the bankruptcy depends on a few factors – whether you have ‘surplus income’ (see below) and whether you have been bankrupt before. If you have no surplus income and have never been bankrupt before, you will be eligible for an automatic discharge after nine months.

How long does the Consumer Proposal last?

A Consumer Proposal must be completed within 5 years. Usually the payments are monthly (over 60 months), but a Consumer Proposal can also include a lump sum payment, or a combination of the two. If your finances allow, you can pay it off sooner than the agreed-upon payment schedule lays out.

What is a bankruptcy?

A bankruptcy is a legal process to discharge your debts. It is a declaration that your debts are too high for you to repay – and far better than the old concept of a ‘debtor’s prison’! It allows for a fresh start, while giving your creditors some return on what’s owed only if you have a level of income that allows for payments to be made to them, or unprotected assets that can be liquidated (however, most common assets are protected during this process – see below for more information on protected personal assets).

What is a Consumer Proposal?

A Consumer Proposal is an offer to your creditors to pay back a percentage of what you owe them, based on your ability to pay. It is governed by the Bankruptcy and Insolvency Act, administered by a Licensed Insolvency Trustee. Unlike other negotiated debt settlement plans, it is legally binding on all creditors and usually involves paying back less than the total amount of your debt.

What is a Licensed Insolvency Trustee (LIT)?

Licensed Insolvency Trustees (LITs) are federally regulated professionals who provide advice and services to individuals and businesses to reorganize and resolve financial difficulties with expertise and compassion. LITs help individuals or businesses make informed choices to deal with their financial difficulties. They are the only professionals able to administer bankruptcies or proposals.

Corporate Bankruptcy Review | Campbell Saunders Insolvency Trustee

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When a company finds itself struggling to operate profitably within its business model, it can lead to a series of challenges. Pressure from banks to meet working capital requirements and loan ratio covenants, along with demands for a business plan with favorable financial projections that may seem unattainable, can become overwhelming. Shareholders, creditors, and other parties may also exert pressure on the company, making the situation more complex.

At Campbell, Saunders Ltd., we understand the importance of gaining an unbiased and independent assessment of your company’s current state. Our business review services can provide you with valuable insights that can be shared with your lenders, empowering them to make informed decisions based on reliable information.

The scope of our business review may encompasses several critical aspects, including:

Review of Financial Performance:

We thoroughly analyze your company’s recent financial performance and current financial position, taking into account industry and market conditions and trends.
Assessment of Management Information Systems:

We evaluate the accuracy and timeliness of your financial reporting and the effectiveness of your management information systems.
Business Plan and Viability Assessment:

Our team reviews your business plan, cash flow projections, and future viability to identify areas that require attention and improvement.
Short-term Cash Flow Requirements:

We assess your short-term cash flow requirements to help you address immediate financial challenges.
Liquidation Assessment:

In the event of security enforcement or a potential sale of the business, we provide a thorough liquidation assessment to estimate the recovery for stakeholders.
Review of Available Options:

Our team explores all available options to help you make informed decisions that align with your company’s best interests.

If you are interested in discussing these services or exploring other options, we encourage you to reach out to us for a free initial consultation. Our team is dedicated to providing tailored solutions that address your unique challenges and set your business on a path to sustainable growth.