Your Guide to Bankruptcy or Consumer Proposals in the GTA

If you’re considering a consumer proposal or bankruptcy in Durham, the first step is to make an appointment with one of our Licensed Insolvency Trustees at Yanch Dey & Associates Ltd. to discuss your case. Our Licensed Insolvency Trustees will discuss what you owe and the best options for you going forward.

Consumer Proposals vs. Bankruptcy

People may choose a consumer proposal to avoid going bankrupt. In a bankruptcy, you’re unable to pay your debt and don’t usually have much left over after paying your basic necessities. In a consumer proposal, on the other hand, you have the ability to pay at least a portion of your debt but need interest to stop and more time to pay.

Property Ownership

In terms of property ownership, in a bankruptcy, you assign your assets to the trustee. There are however, many assets that you can keep because they are exempt from seizure. Even if an asset isn’t exempt, you may get to keep it by paying its value into your bankruptcy. For assets like a house or a car, if there is no equity, you can just continue to pay the bank loan car loan In in a consumer proposal, you usually don’t lose your assets.

Your Income

In a bankruptcy, your income can impact the length of the process. Each month during the bankruptcy you are required to report your income to your trustee. If your income changes, the amount you are obliged to pay will also change. In a consumer proposal, the trustee will look at your income and help you come up with a monthly payment to offer to your creditors. If your income goes up or down, you payment stays the same.

Credit Rating

A bankruptcy stays on your record at the credit bureau for seven years and consumer proposals stay on your record for three years after the completion of the proposal up to a maximum of seven years.

Monthly Reporting

In a bankruptcy you are required to complete a monthly budget of all of your income and expenses, and forward all pay stubs to the Licensed Insolvency Trustee.

Taxes and Tax Implications

In a bankruptcy you lose your tax refund and GST/HST for the year relating to the bankruptcy and any prior year not yet received. You get to keep your Canada Child Tax Benefit. A consumer proposal, you get to keep your tax refunds, GST and all other tax credits.

If you’re considering bankruptcy or going bankrupt, the first step is to make an appointment with one of our Licensed Insolvency Trustees. With Yanch Dey & Associates Ltd. you can discuss your finances in confidence with professionals who have helped thousands of people return to financial health.


Yanch Dey & Associates Ltd.

215 Simcoe St N.

Oshawa, ON Canada

L1G 4T1

Oshawa:  905‑721‑7506

Ajax: 905‑427‑6647



Monday - Friday 09:00 AM - 05:00 PM

Saturday & Sunday By Appointment

Evenings by appointment


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