If you’re searching for “bankruptcy vs consumer proposal” know that both options are designed for people who are unable to pay their debts as they become due. Both consumer proposal and bankruptcy are administered by a Licensed Insolvency Trustee. In deciding between a bankruptcy or consumer proposal, it’s important to understand both processes first.
Consumer Proposal and Personal Bankruptcy are both legal processes that provide individuals with ways to eliminate their debt. Both processes are regulated under the Federal Bankruptcy and Insolvency Act. There is no “one size fits all” solution that works for everyone. Each person’s financial situation is unique and, because of this, different options work better in different scenarios. It is good idea to learn about the two processes in the planning stages and the best way is to do a free consultation with a Licensed Insolvency Trustee.
The Trustee will thoroughly review your situation and professionally advise you about benefits and drawbacks of debt settlement options available to you.  It’s important to note that consumer proposal and bankruptcy are not the only two options available to those who are struggling with debt. A trustee can help you understand all your options. In the end, it’s not about bankruptcy or consumer proposal, it’s about finding the right option for you. Licensed Insolvency Trustees offer a free, one-hour no-obligation phone consultation to get started.  During the meeting, the Trustee will look over the details of your financial situation (your debts, your income and your assets, as well as your monthly household budget) and then provide you with an analysis of your situation, highlighting the options available for your specific situation.
It’s important to remember that Licensed Insolvency Trustees are bound by a strict code of ethics (through CAIRP, a member organization of Licensed Insolvency Trustees across Canada) and are required to explain all possible solutions to you and answer any questions you might have. That means that by the time your meeting has concluded, you will have the information you need to make an informed decision about your financial future.
Two debt relief solutions that could be available to you are a Consumer Proposal or a Bankruptcy. While these are both legal processes, they are different in several key ways, which leads to many people searching for terms such as “bankruptcy versus consumer proposal” to figure out the differences. Understanding your own financial situation as well as the two processes can help you make this important decision.
For anyone dealing with crushing debt, harassing phone calls and letters from collection agencies or a wage garnishment, meeting with one of our Licensed Insolvency Trustees is the best way to ensure you have all the facts so you can make an informed decision about how best to deal with your debts.