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.

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Receivership vs. Division I Proposal: Which Option Fits?

When a business faces financial challenges, understanding the available options is an important first step. Cash flow issues, creditor pressure, or missed loan payments can create uncertainty, but the right solution depends on the company’s financial position, goals, and long-term outlook. Two options businesses may consider are a receivership and a Division I Proposal. While […]

Consumer Proposal vs Bankruptcy: Key Differences for BC Residents

If you’re comparing a consumer proposal vs bankruptcy in BC, the right choice depends on more than how much debt you have. Your income, assets, home equity, monthly budget and ability to repay all play a role. This guide breaks down the key differences so you can understand how each option works and what it […]

Debt Relief Quiz: Find the Right Option for You

If you are losing sleep over debt, you are not alone. Many people quietly struggle with rising balances, collection calls, and the feeling that their options are running out. What most Canadians do not realize is that there are several ways to deal with serious debt, and bankruptcy is only one of them. The challenge […]

Bankruptcy Myths vs. Facts

Most people do not start by asking if they should file for bankruptcy. They start by trying to keep up. You might still be making payments, doing your best to stay on top of things, and hoping it will turn around. But behind the scenes, the balance grows. This is where misinformation makes things harder. […]

How to Stop Wage Garnishment in BC with a Consumer Proposal

If your paycheque has suddenly shrunk because of wage garnishment, you likely have more questions than answers. Below, we explain how wage garnishment works in British Columbia, how much can legally be taken, and most importantly, how a consumer proposal can stop garnishment of wages and help you regain control. What Is Wage Garnishment in […]

Top 5 Debt Consolidation Options in BC (and When to Use Them)

If you are constantly moving money around, watching balances barely change, and wondering how things became this complicated, you are not alone. For many people in British Columbia, debt does not arrive all at once. It builds quietly through everyday expenses, rising costs, and life events that were never part of the plan. At some […]

First Meeting with a Licensed Insolvency Trustee: What to Expect

For many people, booking a first meeting with a Licensed Insolvency Trustee comes with a mix of relief and anxiety. Relief because help finally feels possible. Anxiety because debt has a way of making even simple conversations feel heavy. If you are searching for a licensed insolvency trustee near me, chances are something has reached […]

What Happens to Your Home and Car in Bankruptcy?

Most people start thinking about bankruptcy long before they ever reach out for help. They lie awake wondering how things got so heavy, replaying every financial decision, and worrying about the same two fears almost everyone shares. What happens to my home? What happens to my car? These aren’t just assets. They’re stability, routine, and […]

Bankruptcy Myths vs. Facts: Dispelling Common Misconceptions

There’s a certain hush that surrounds the word bankruptcy, a kind of whispered shame that tends to spread faster than the facts ever do. It’s no wonder. Between outdated assumptions, dramatic headlines, and well-meaning advice from friends who’ve never set foot in a Licensed Insolvency Trustee’s office, it’s easy to get caught in a fog […]