Bankruptcy

Important Differences Between a Consumer Proposal and Personal Bankruptcy

Consumer Proposal Bankruptcy
Cost Fixed monthly amount for the term of the proposal. Amount based on what you can reasonably afford. Can vary month to month depending on your income. The more you earn, the more that you pay.
Length Up to 5 years (60 months) 9 months to 36 months
Credit Report Impact R7
indicates that you are on a debt repayment plan. Reported for 3 years after completion.
R9
the lowest rating possible. Indicates the debt is written off. Reported for 7 to 14 years.
Duties Make (agreed upon) monthly proposal payments Required to perform the following:
1) report income each month
2) if trigger surplus income, make additional payments
3) attend 2 counselling sessions
4) provide tax documents (can lose all refunds)
Important Will know up front if creditors will accept proposal offer. 99% of the proposal we file are accepted. Creditors could oppose discharge at the end. Could result in an increase in cost and/or length of bankruptcy term.

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