There are many reasons why you may want to avoid declaring bankruptcy: You may lose certain assets (such as valuable cars and homes). You keep your assets with a consumer proposal or Division I proposal. You must keep detailed records of your income and expenses while you remain bankrupt. Increased income means increased payments to your trustee. Each month you must report your income to your trustee. With a proposal, your payments stay the same regardless of your income. A bankruptcy is not necessarily over in 21 months. If you have significant surplus (extra) income or you are a repeat bankrupt, your bankruptcy may not end in 21 months. Each year the government says how much you can earn while bankrupt (depending on the size of your family and other factors). If you have significant surplus income, your bankruptcy will likely be extended. If you owe more than $200,000 of personal income tax debt that represents 75% or more of your total unsecured debt, your bankruptcy will not end in 21 months. If you have been bankruptcy before, your bankruptcy will not end in 21 months. If a creditor believes you could have solved your debt issues with a consumer proposal instead, they may oppose your discharge. There may be a stigma (real or perceived) about bankruptcy. Bankruptcy cannot deal with some debts. For example: certain student loans, maintenance payments and debts obtained through false pretenses. Last Reviewed: October 2020