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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Category Archives: Bankruptcy Process and Procedures

Our Bankruptcy Process and Procedures category offers comprehensive insights into the intricate legal framework of bankruptcy in British Columbia. Whether you’re considering bankruptcy or navigating the process, this category provides essential information to guide you through every stage.

What You’ll Find in Our Bankruptcy Process and Procedures Category:

Filing for Bankruptcy: Step-by-step guidance on initiating bankruptcy proceedings and submitting required documentation.
Legal Requirements: Eligibility criteria and legal obligations for individuals and businesses seeking bankruptcy protection.
Court Proceedings: Overview of what to expect during court hearings and meetings with creditors.
Debt Discharge: Explanation of the discharge process and when debts are legally forgiven and what debts aren’t dischargeable via bankruptcy.
Bankruptcy Alternatives: Information on alternatives to bankruptcy and their implications.
Legal Rights and Responsibilities: Understanding your rights and responsibilities as a bankrupt individual or business.
Common Issues Addressed: FAQs and common concerns addressed related to bankruptcy proceedings.

Other Categories to Explore:

Debt Management and Prevention | Financial Education

Explore our Bankruptcy Process and Procedures category to gain clarity and guidance on navigating the complexities of bankruptcy law in British Columbia. CSVan is committed to empowering individuals and businesses with the knowledge they need to make informed decisions about their financial futures.

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