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Is a Consumer Proposal considered Bankruptcy

Is a Consumer Proposal considered the SAME AS BANKRUPTCY when trying to re-establish credit, ie when applying one of the conditions states “Have not filed for Bankruptcy in the past 7 years.” Our proposal was for 3 years, was completed and discharghed in early 2009

Posted from: Ontario

One Response to “Is a Consumer Proposal considered Bankruptcy”

A licensed trustee said...

By definition, a consumer proposal is not considered the same as bankruptcy – if it was it would be called bankruptcy. One of the advantages of filing a consumer proposal is that if you are asked in the future “have you every filed bankruptcy” the answer is NO.

That being said, a consumer proposal remains on your credit report for 3 years after you complete your payments. If you are applying for credit during that period then the lender may become aware of it. So, if you completed your proposal in 2009 it will remain on yoru credit report until 2012.