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.
