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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Tips to Budget While Paying off Debt

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Category Archives: Financial Education

CSVan’s Financial Education category is dedicated to providing you with the knowledge and skills necessary to make informed financial decisions. Whether you’re looking to enhance your financial literacy or improve your money management skills, this category offers valuable insights and practical tips.

What You’ll Find in Our Financial Education Category:

Personal Finance Basics: Fundamental principles of personal finance, including budgeting and saving.
Retirement Planning: Guidance on planning for retirement, including pension options and savings strategies.
Financial Literacy: Resources to improve your understanding of financial concepts and terminology.
Economic Trends: Analysis of current economic trends and their impact on personal finances.
Money Management Tips: Practical tips for managing money effectively and achieving financial goals.
Educational Tools: Interactive tools and calculators to help you plan and track your finances.

Other Categories to Explore:

Legal Insights | Mental and Emotional Well-being

Explore our Financial Education category to empower yourself with the knowledge and skills needed to secure your financial future. CSVan is committed to promoting financial literacy and helping you make informed financial decisions.

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 […]