Bankruptcy easier than consumer proposals?

September 28th, 2005 by Questions

It seems like it’s more beneficial to file for bankruptcy than it is file a proposal, etc, for debts. It looks like a bankruptcy is over a lot quicker than a proposal, where you have to pay perhaps for years.

Am I mistaken?



One Response to “Bankruptcy easier than consumer proposals?”

, Barton Goth, GCO Inc. Bankruptcy Trustees said:

This really depends on the circumstances you are facing. For instance, if you have some surplus income a proposal may be a better option as there may be significant uncertainty when it comes to a bankruptcy as the court, due to the higher income, may order payments to continue for an extended period of time. Other times a proposal is done to enable the debtor to keep a number of assets that they may have lost during a bankruptcy. As you can see, what options works best is highly dependent on the situation at hand and I recommend clicking on the contact an expert link and discussing the ramifications of a bankruptcy vs. a proposal with a trustee in your local area.

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