How Does Bankruptcy Compare To A Consumer Proposal?

If you are insolvent, two processes for relief from unsecured debt become available to you.

Both bankruptcy and a consumer proposal will excuse you from a potentially large portion of your unsecured debt after you have paid a portion of it.

This can either be done through: 1. a) Selling assets or equity in assets, as in a bankruptcy.

2. b) Making fixed monthly payments without interest on an agreed-upon reduced amount, as in a consumer proposal.

Those are the basic differences, read on to learn more about bankruptcy vs consumer proposal insights from a bankruptcy trustee, i.e., Licensed Insolvency trustee.

The first bankruptcy will remain on your credit report for six to seven years, whereas a consumer proposal will remain on your credit report for three years after completion.

What Bankruptcy Does to Your Credit Report

What Bankruptcy Means for Additional Income

In a bankruptcy, you may wind up having to pay a portion of additional income to your creditors.

In a consumer proposal, you pay a fixed amount every month regardless of any increases to your income.

What Bankruptcy Means for Additional Income

Bankruptcy may hurt your chances of future employment if that job requires you to be bonded.

How Bankruptcy Affects Future Employment

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