Consumer Proposal vs Bankruptcy

July 21st, 2008 by Questions

I am considering a consumer proposal. If I`m asked by any banking institute during or after the proposal if I`ve ever been bankrupt or declared bankrupt, do I say `yes` (is a consumer proposal `bankruptcy?), or do I say `no` and explain I have made a proposal? Thank you for your help.

Posted from: Newfoundland and Labrador

Questions

One Response to “Consumer Proposal vs Bankruptcy”



, A licensed trustee said:

As long as the credit application asks whether or not you have ever filed for bankruptcy then you should answer “no” if you’ve only ever filed a consumer proposal.

If the credit application asks whether or not you’ve declared yourself to be insolvent then your answer will be yes. I have never seen a credit application that asked if you’ve decalred yourself to be insolvent, but clients have told me they exist.

Good luck rebuilding your credit.

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