- Once a consumer proposal is filed, any wage garnishments are stopped, and assets cannot be seized.
Consumer Proposals vs Bankruptcy
When you have debt issues a consumer proposals may have advantages versus filing for a bankruptcy.
In a consumer proposal, if the debtor earns or receives income over what was originally described in the proposal, the proposal is not affected.
Employment is not affected in consumer proposals
Stays on your credit report for three (3) years.
Consumer proposals are prepared by a licensed insolvency trustee and then presents the proposal to your creditors for approval.
- Set up cost is included in monthly payment
- Costs less than Bankruptcy
- Debts are reduced up to 70%
- You keep your assets.
- Wage garnishees are stopped,
- Certain assets can be seized in a bankruptcy, call us to find out what maybe seizable in your situation.
In bankruptcy if you receive or earn additional income or money then the amount you are required to pay towards the bankruptcy can increase.
Bankruptcy can affect employment for some professions, legal professions, banking, anything to do with money. Bankruptcy can affect your ability to be bonded.
If you get a raise at work you can be required to pay more.
When you file for bankruptcy it stays on your credit report for six (6) to seven (7) years.
Creditors have no say in a bankruptcy.
- More expensive
- Cost can increase if you earn more
- Tax refunds are forfeited
- Assets are seized
Learn more about Consumer Proposals vs Bankruptcy
We’re in the business of helping people get out of debt and we can help you. Give us a call to learn more about consumer proposals vs bankruptcy. We can go over your options and give you honest advice about whats best for you.
Take the first step to living debt free, call 905-721-7506 for an appointment today.
★★★★★ After years of struggling with credit card debts I was getting deeper and deeper in the hole. Finally a friend suggested I speak to YanchDey.
I made an appointment to speak with Kelli Dey who was non judgemental and explained the differences in a consumer proposal vs filing for bankruptcy. Kelli explained how I could get out of debt and pay off my outstanding loans to my creditors in 5 years with a consumer proposal and avoiding bankruptcy. Now I’m stress free, the calls have stopped, Many thanks! Julie Davies, Oshawa.
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This site is for information only and is not meant to replace qualified legal advice by a Licensed Insolvency Trustee the writers shall not be held responsible for any information that may be incorrect or out of date in regards to consumer proposals vs a bankruptcy. The owners of this website recommend that anyone wishing to learn about how a trustee can deal with your financial issues should contact our office.