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.

Understanding Your Relationship with Money | Campbell Saunders Licensed Insolvency Trustee

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 in guiding individuals towards a healthier financial future.

Here are some key factors that influence your relationship with money:

Money History

Your past experiences with money shape your current financial habits and attitudes. Were you raised in a household where money was scarce, leading to a constant struggle to make ends meet? Or did you grow up in a financially stable environment where money was never a pressing issue? Understanding your money history provides valuable insights into your financial behaviors.

Learn more about how your history and relationship with money affects your spending patterns.

Money Values

Your values are like the compass guiding your financial journey. They’re the deep-rooted beliefs and principles that shape how you perceive and interact with money. Think of it this way: if money were a tool, your values would be the blueprint for how you use it.

For some folks, money means freedom – the ability to pursue dreams, travel, or simply live life on their terms without constantly worrying about finances. It’s that sense of security knowing they have a safety net to fall back on in times of need. On the flip side, others might view money as a symbol of power or status. It’s not just about what they can buy, but the influence and recognition it brings.

Understanding your money values is like getting to know yourself on a deeper level. It’s about asking yourself what truly matters to you in life and how money fits into that equation. Maybe you value experiences over possessions, or perhaps you prioritize providing for your family above all else. Whatever it is, identifying your money values helps you align your financial decisions with what brings you the most fulfillment and satisfaction.

Once you have a clear understanding of your money values, you can start prioritizing your financial goals accordingly. Whether it’s saving for that dream vacation, investing in your education, or building a nest egg for retirement, your values serve as a guiding light, helping you stay focused on what truly matters to you.

Money Beliefs

Our beliefs about money, whether conscious or subconscious, greatly influence our financial behaviours. Do you believe that money is inherently good or bad? Do you have a scarcity mindset, always fearing there will never be enough? Examining and challenging these beliefs can help reshape your relationship with money for the better.

Money Goals

Setting clear financial goals is essential for creating a roadmap to financial success, especially during uncertain times like the COVID-19 pandemic. Whether it’s building an emergency fund, paying off debt, or saving for retirement, having concrete goals provides motivation and direction in managing your finances effectively.

Learn how a consumer proposal helped this BC resident save more than 60% on her debt.

Money Triggers

Many individuals experience anxiety or stress when faced with financial challenges or decisions. These triggers often stem from a misalignment between our money values, beliefs, and goals. Recognizing and addressing these triggers is essential for overcoming financial obstacles and maintaining financial well-being.

In conclusion, understanding your relationship with money is the first step towards achieving financial stability and peace of mind. As a Licensed Insolvency Trustee, we are here to support you on your journey towards financial health. Whether you’re struggling with debt, facing financial hardship, or simply seeking guidance on managing your finances, we’re here to help you navigate through life’s financial challenges.

If you’d like to learn more about improving your financial situation or exploring debt relief options, please don’t hesitate to contact us. Your financial well-being is our priority, and we’re committed to helping you achieve a brighter financial future.