Free Information About Bankruptcy in Windsor Ontario
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Bankruptcy vs. Consumer Proposal

As a Windsor based trustee, I am often asked what is better – a bankruptcy or consumer proposal. There are pros and cons of each. Here is an overview:

BANKRUPTCY:
CON:
- you lose your non-exempt assets
- you lose the ability to deal with your own assets while bankrupt, such as selling an exempt asset
- you make a payment based on your income so your monthly payment can change each month
- you get the worst credit rating

PRO:
- bankruptcy can be faster from start to finish than a consumer proposal

CONSUMER PROPOSAL:
PRO:
- you do not lose your assets
- you do not better effect on your credit rating than bankruptcy
- payments are fixed each month, your payments don’t increase if you get an increase in salary
- provides a better credit rating than bankruptcy

CON:
- it can last longer than a bankruptcy. The period can be anymore from a lump sum payment to up to 60 months

If you would like to review your situation and determine which option is better for you, call me at 310-PLAN or email me to book a no charge consultation.

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