February 21st, 2011 by Questions
What is the difference between a bankrupty and a consumer proposal
Posted from: Ontario
February 21, 2011 at 10:02 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
While both a bankruptcy and a consumer proposal are provided for under the Bankruptcy and Insolvency Act, they are quite different.
For instance, a bankruptcy is designed to be the quickest way to deal with outstanding debt. Once you have completed a set list of duties it ultimately results in the creditors writing off a majority of the debt.
On the other hand a consumer proposals is legal process that allows you to negotiate a court sanctioned settlement with your creditors so that you pay a portion of the money back over time and therefore are able to avoid a bankruptcy.
If you are curious about more of the difference, as there are quite a few, I would encourage you to contact a local trustee directly.
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