consumer proposals question on credit application

May 29th, 2005 by Questions

If you file a consumer proposal vs bankruptcy and you complete the proposal. When you are ask the question have you filed bankruptcy in the past seven years would you answer yes or no.A lot of credit application ask this question.They keep on saying to avoid bankruptcy file a proposal,but is a proposal considered the same as bankruptcy in this area


One Response to “consumer proposals question on credit application”

, A licensed trustee said:

If you did not (have not) filed bankruptcy then you may honestly answer the question “no”.

One of the reasons to file a proposal instead of filing bankruptcy is so that you may answer this very question in the future.

Something to watch out for: if the application asks if you have ever been “insolvent” the answer would be “yes”.

There are not too many employers that will ask this question, but it is becoming more common on credit applications. In order to file a proposal or bankruptcy you must declare yourself to be insolvent and therefore the different answer. Declaring yourself to be insolvent simply means that you cannot deal with your debts in the normal manner.

Bankrupt and/or bankruptcy are legal terms for very specific legal procedures – if you have not been involved in the procedure then the answer to your question is “no”.

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