How to Decide Between a Bankruptcy or Consumer Proposal?

rebeccamartynGuest commentary by Rebecca Martyn, bankruptcy trustee, consumer proposal administrator, and Angela Marquis, Windsor, Ontario.

If your debts are overwhelming, how can you decide between filing a bankruptcy or a consumer proposal? Here are some factors to consider:

You might choose to file personal bankruptcy in Canada if:

  • You have low income
  • You have no assets to lose
  • You have never been bankrupt before
  • You have a wage garnishment

You might choose a consumer proposal if:

  • You have a good job with a good income
  • You have assets you want to protect, such as a house or a car
  • You want and have the ability to pay a portion of your debt back
  • You don’t want to go bankrupt
  • You debts are lower than $250,000 (not including your mortgage)
  • You have a wage garnishment

Each situation is different, so do your research and review your options and then contact a bankruptcy trustee.

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