consumer proposal vs. debt settlement

what is the difference between a consumer proposal and a debt settlement?

Posted from: Alberta

One Response to “consumer proposal vs. debt settlement”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

A consumer proposal is essentially a court sanctioned way to settle your debts. You will find that there are very few mechanisms to settle your debts outside of this court sanctioned vehicle. The reason is when you have a number of creditors it is often very difficult to get consensus from all of your creditors on the settlement offers. This is the main advantage of doing it via a consumer proposal as you only need to have a majority of your creditors cooperate with the plan and then it is legally binding on all of the other creditors.