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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Demystifying Bankruptcy: A Comprehensive Guide to Understand How to File Bankruptcy in Canada

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Category Archives: Bankruptcy Basics

At CSVan, we understand that facing financial challenges can be overwhelming. Our Bankruptcy Basics category is designed to provide you with essential knowledge and insights into bankruptcy proceedings. Whether you’re considering bankruptcy or seeking to understand its implications, this category will guide you through the foundational aspects of bankruptcy law.

What You’ll Find in Our Bankruptcy Basics Category:

Introduction to Bankruptcy: Learn about the concept of bankruptcy and when it may be considered as a financial solution.
Types of Bankruptcy: Explore different types such as personal and corporate bankruptcies, and understand their differences and implications.
Eligibility Criteria: Discover the requirements you must meet to qualify for bankruptcy protection under Canadian law.
Legal Process: Step-by-step explanation of the bankruptcy process, from making the assignment to discharge.
Common Questions Addressed: Answers to frequently asked questions about bankruptcy, addressing concerns and dispelling myths.
Financial Impact: Understand how bankruptcy affects your credit score, assets, and future financial prospects.
Rebuilding Financial Health: Tips and strategies for rebuilding your financial health post-bankruptcy.

Other Categories to Explore:

Debt Management and Prevention | Bankruptcy Process and Procedures

Dive into our Bankruptcy Basics category to gain clarity and insight into navigating the complexities of bankruptcy proceedings. Our goal is to empower you with knowledge and support so you can make informed decisions about your financial future.

Demystifying Bankruptcy: A Comprehensive Guide to Understand How to File Bankruptcy in Canada

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Tax Returns & Bankruptcy

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Bankruptcy Discharges

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