bankruptcy vrs consumer proposal

March 13th, 2008 by Questions

With a combined $100,000 in credit card and line of credit debt. With less than $5000 in assets, is there any advantage in a consumer proposal over bankruptcy?


One Response to “bankruptcy vrs consumer proposal”

, Barton Goth GCO Bankruptcy Trustees said:

The main advantages of a proposal are as follows:
1. no vesting of non-exempt assets like in a bankruptcy (although may not be a major issue in your situation);
2. reduced impact on credit, making it easier to rebuild;
3. once accepted by your creditors your payments are fixed so if you get a raise your payment doesn’t automatically increase like it would in a bankruptcy;
4. less ramifications if you are self employed.

These are the major advantages but you ae best to sit down with a local trustee so they can discuss the difference with respect to the specifics of your situation.

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