Consumer proposal or a debt settlement?

Which is better to fix the credit faster Consumer Proposal or Debt Settlement? How it effects credit? How long both of these stay on record?

Posted from: Ontario

One Response to “Consumer proposal or a debt settlement?”

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

This is difficult to say in every circumstances, but typically both a consumer proposal and a debt settlement program will have the same impact on your credit. The reason this is difficult to say is that not every debt settlement is the same, there are many different variations of this type of option, but in most instances the net impact on credit is an R7 listed for 3 years from the completion of the program. As such you typically are further ahead with the filing of a consumer proposal as it will allow you to negotiate to pay a portion of the principle without interest and most debt settlement plans do not.