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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Debt & Mental Health

Home » Mental and Emotional Well-being

Category Archives: Mental and Emotional Well-being

CSVan’s Mental and Emotional Well-being category focuses on the importance of mental health in navigating financial difficulties. We provide resources and guidance to help you maintain emotional balance and resilience throughout your financial journey.

What You’ll Find in Our Mental and Emotional Well-being Category:

Stress Management Techniques: Practical tips and exercises to manage stress and anxiety related to financial issues.
Building Resilience: Strategies for enhancing resilience and coping skills during financial setbacks.
Mindfulness and Meditation: Techniques to promote mindfulness and enhance mental clarity.
Supportive Resources: Access to support groups, counseling services, and mental health professionals.
Healthy Lifestyle Tips: Advice on maintaining physical health and well-being during times of financial stress.
Peer Support: Stories and experiences shared by others facing similar challenges, fostering a sense of community.
Self-care Practices: Importance of self-care and practical self-care tips for managing overall well-being.

Other Categories to Explore:

Financial News and Updates | Legal Tips and Resources

Explore our Mental and Emotional Well-being category to prioritise your mental health while navigating financial challenges. CSVan is committed to supporting your holistic well-being during every step of your financial journey.

Debt & Mental Health

The Link Between Debt and Mental Health: Finding Financial Freedom and Peace of Mind Dealing with debt and financial problems can have a profound impact on mental health, just as mental health issues can lead to money troubles. The relationship between these two aspects is complex and interconnected, with each affecting the other in a […]