Best Financial Advisors in Victoria, BC

Bankruptcy is a legal process regulated by the Bankruptcy and Insolvency Act by which you may discharge all or most of your debts. The purpose of bankruptcy is to permit an honest but unfortunate person to be released from their debts and get a Fresh Start .

A consumer proposal is a legal process regulated by the Bankruptcy and Insolvency Act by which you make a formal offer to your creditors for settlement of your debts. Under the proposal, you would agree to pay part or all of your debt to your creditors over a specific period of time. The creditors get to vote for or against the proposal made. If they vote for it, you then proceed with fulfilling the terms of your proposal. This is done by making monthly payments in the amount outlined in your proposal to the Administrator, who distributes the money to the creditors. Once you have fulfilled the terms of the consumer proposal, you will be discharged of all, or most, of your debts.

A bankruptcy and a consumer proposal is a matter of public record and will appear on your credit history. In addition, the Licensed Insolvency Trustee is required to notify all of your creditors. Normally, no advertisement will appear in the newspaper. If you provide a copy of your most recent pay statement then your employer is not usually notified, unless the Trustee is required to stop a garnishee.

Most jobs in Canada will not be affected by filing for bankruptcy. If you are a director of a company, working in a professional field such as insurance, law, accounting or finance, professional designations could be affected. Filing a consumer proposal can avoid this, so make sure to speak to a Licensed Insolvency Trustee about your options. They can ensure your professional designation is not at stake, and find a solution for your debt problem.