Consumer proposal vs Bankruptcy – a creditor perspective
May 9th, 2008 by Questions
As a creditor , should I be suspicious of any debtor who files a consumer proposal instead of bankruptcy?
What is the advantage , to a honest debtor , of proposing a settlement when he can walk out of the debts in nine months by declaring bankruptcy?
Either he has significant assets , significant surplus income , expects a windfall in the next twelve months or expects a significant improvement in wages in the same period if a proposal is to be better than a bankruptcy. All of which should make the creditor refuse the proposal.
What other benefits does a honest debtor get in a proposal? His credit is already poor and a bankruptcy won`t affect his job except in a very narrow set of circumstances.
Posted from: Ontario