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: Debt Management and Prevention

At CSVan, our Debt Management and Prevention category aims to equip individuals with the tools and knowledge necessary to manage their finances effectively and avoid debt-related challenges. We provide practical advice and resources to help you achieve financial stability and peace of mind.

What You’ll Find in Our Debt Management and Prevention Category:

Budgeting Techniques: Learn how to create and maintain a budget that fits your financial goals and lifestyle.
Debt Consolidation Options: Explore strategies for consolidating debt to simplify payments and reduce interest rates.
Credit Management: Tips for improving your credit score and managing credit responsibly.
Savings Strategies: Insights into effective savings strategies and building emergency funds.
Financial Planning: Guidance on setting financial goals and creating a plan to achieve them.
Debt Repayment Plans: Information on different repayment plans and strategies for paying off debt.
Preventing Financial Crises: Advice on proactive measures to prevent financial difficulties and crises.

Other Categories to Explore:

Bankruptcy Basics | Financial Education

Navigate through our Debt Management and Prevention category to take control of your finances and build a secure financial future. CSVan is committed to providing you with the support and resources you need to achieve financial well-being.

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Going through a hard financial challenge can get overwhelming, especially when it comes to large amounts of debt. We believe you can get through any financial challenge with the right planning and support. With over four decades of experience, we are dedicated to supporting individuals and small businesses in making well-informed financial decisions. This article […]

Tips to Budget While Paying off Debt

At Campbell Saunders, we understand that managing debt can be overwhelming, but we believe that achieving financial freedom is within your reach. Budgeting is a critical tool in this journey, especially for those dealing with debt. In this blog post, we’ll provide practical, real-world tips to help you budget effectively while paying off debt, setting […]

Understanding Your Relationship with Money: A Guide for Canadians

Money plays a significant role in our lives, influencing our decisions, aspirations, and even our emotional well-being. Yet, the way we perceive and handle money varies greatly from person to person. Understanding your relationship with money is crucial for financial stability and success. As a Licensed Insolvency Trustee, we recognize the importance of this understanding […]

Mastering the Art of Budgeting: Your Path to Financial Freedom

In this post we’re diving headfirst into the wonderful world of budgeting – your ticket to taking control of your finances and paving the way to a brighter financial future. Whether you’re aiming to save for a rainy day, pay off debt, or simply live more comfortably within your means, mastering the art of budgeting […]

Navigate Your Way to Financial Freedom: 10 Strategies to Break the Chains of Debt

Almost half of Canadians (48% to be exact) have found themselves carrying debt above their mortgage. The debt burden in Canada continues to increase and with the rise in living costs, British Columbia has seen its fair share of rising debt. The important takeaway is you are not alone. Whether you are afraid of bankruptcy […]