bankruptcy vs consumer proposal
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BANKRUPTCY CONSUMER PROPOSALVS
Bankruptcy and Consumer Proposal
Di�erences between
BANKRUPTCY CONSUMER PROPOSAL
Who can claim?
Anyone who is insolvent and owes more than $1,000.
If your debts do not exceed $250,000 (excluding mortgage) and you are able to make monthly payments toward paying o� a portion of your debt.
$1000 $250K
BANKRUPTCY CONSUMER PROPOSAL
Who can file?
Must be filed by a Licenced Insolvency
Trustee
Must be filed by a Licenced Insolvency Trustee
BANKRUPTCY CONSUMER PROPOSAL
What does it cost?
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$Payment are based on income, non-discretionary
expences and household size.
A proposal amount is agreed between you and your creditors. A monthly payment is determined based on your debt and any assets. Administration costs are included in the monthly payment
BANKRUPTCY CONSUMER PROPOSAL
For first time bankruptcies – a minimum of 9 months
Up to 5 years but may be paid o� early with no penalty
How long will it last?
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1 2 3 4 5YEARS
9MONTHS
BANKRUPTCY CONSUMER PROPOSAL
Will I lose my assets?
Certain assets are surrendered depending which province you live in
No assets are surrendered
BANKRUPTCY CONSUMER PROPOSAL
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Turned over to your creditors You are allowed to keep refunds
What about my tax refund?
$ $$
BANKRUPTCY CONSUMER PROPOSAL
How will it a�ect my credit rating?
Your credit rating will show R9 for 7 to 14 years. This is the worst rating
Your credit rating will show R9 during the period of the proposal, and go to R7 once the proposal has been completed, with all payments made. This indicates you have made a settlement with your creditors
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R9$$
R7
BANKRUPTCY CONSUMER PROPOSAL
Do I have to report monthly?
You must submit a report that details all income and expenses and include
pay stubs and certain receipts.
No monthly reports are required
BANKRUPTCY CONSUMER PROPOSAL
Will it stop collections and wage garnishment?
Contact from creditors cease
upon filing
Contact from creditors cease upon filing
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