If you are wondering what you can do to relieve yourself of debt, consumer proposal services and bankruptcy are both viable solutions. However, it is best to know what each program entails before making a final decision.
- Costs – With consumer proposal services, you and your creditors agree to a settlement amount. Then, you will be required to pay a fixed monthly payment until the terms of the proposal are completed. In comparison, after bankruptcy, your monthly payments are based on your income. Generally, the more you earn, the more you are required to pay.
- Assets – By devising a consumer proposal plan with our help, you will not lose any of your assets. During bankruptcy, you may be required to surrender some of your assets in order to absolve a portion of your debts.
- Credit Rating – When you go through the consumer proposal process, you will obtain an R7 credit rating indicating that you have a settlement with your lenders. After bankruptcy, you will receive an R9 credit rating. Depending on your personal circumstances, this rating can remain on your credit report anywhere from 7 to 14 years.
- Monthly Reporting – After you have come to a settlement with your creditors through the consumer proposal process, you will not be required to complete monthly tasks. However, after bankruptcy, you will be expected to submit a monthly budget to us as your Trustee in Bankruptcy.
Consumer proposal services and bankruptcy both have their advantages and disadvantages. Let us help you decide which option is right for you and your unique financial circumstances.