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Bankruptcy is a legal process available to resolve your debts. It allows unfortunate debtors the ability to get out from under the unmanageable burden of debt and to “Start Fresh.” For example, you must be insolvent before you may apply for bankruptcy, meaning that you must owe at least $1,000 and must be unable to pay your debts as they come due. If this describes you, or if you feel that your debts are such that you would benefit from bankruptcy, contact Grant Thornton Limited office to learn more about personal bankruptcy in Vancouver. Our Licensed Insolvency Trustees can help you to take advantage of this opportunity to resolve your overwhelming debt.

Understanding the Bankruptcy Process

The length of your personal bankruptcy in BC, will be dependent on your actual income and the size of your household, so discuss those factors with your insolvency professional when initially consulting with him or her. The process for a first-time bankruptcy will take 9 or 21 months. For a second-time bankruptcy, the process is 24 or 36 months—a drastic increase. For this reason, it is important to work to avoid multiple bankruptcies. However, if that is not an option for you, we can help you to navigate the increasing complexities of multiple bankruptcies at any of our BC offices. Our Licensed Insolvency Trustees are equipped and prepared to guide you through even the most complex regulations for personal bankruptcy in Victoria, the Lower Mainland and the BC Interior, helping you file bankruptcy legally and safely.

Your Duties

Personal bankruptcy in Prince George and surrounding areas involves a number of duties you are required to perform in order to be eligible for a discharge from your debts. These include:

  • Reporting your income each month and making certain payments if required
  • Attending two mandatory counselling sessions
  • Assisting a Trustee in the administration of your estate
  • Providing information for the filing of tax returns

These duties are essential, and with a little planning they are easy to complete. Your duties are also beneficial to you—attending counselling sessions can help you to avoid a second bankruptcy, giving you strategies to succeed with your new start!

Bankruptcy vs. Consumer Proposals – What Are the Differences?

When it comes to dealing with debt – there are many options available to you. We always remind our clients that bankruptcy isn’t the only option. In many cases, consumer proposals may be the better choice – it all depends on your unique situation. There are many factors to consider, including the following:

  • If you owe more than $1,000 and you are insolvent (unable to pay your debts), you are eligible to file bankruptcy in Canada
  • If your debt is less than $250,000 (excluding mortgage) and you can afford to repay some of your debts, you are eligible to file a consumer proposal
  • A consumer proposal is not automatically guaranteed – it must be approved by a majority of your creditors
  • Your bankruptcy payment is based on your income
  • Your consumer proposal payment is a result of the negotiations between you and your creditors. It will be a fixed monthly payment for the duration of the agreement
  • Consumer proposal payments are typically lower as they can be spread out for up to 5 years
  • If filing for the first time, your bankruptcy can be completed in as little as 9 months but may be extended up to 21 months if surplus income payments are required

Please note, this is not an exhaustive list. You should speak with a Licensed Insolvency Trustee to fully explore the differences between a personal bankruptcy in BC and a consumer proposal.

Get Help with Bankruptcy in Surrey, Vernon, Victoria & Beyond

Grant Thornton Limited are available to discuss your bankruptcy in Surrey, Vancouver, Burnaby and New Westminster. Along with our Lower Mainland offices, we also assist you with personal bankruptcy in Vernon, Prince George and Victoria. In each of our locations you can meet with debt professionals, who will answer your questions in a confidential and considerate manner.