bankruptcy vs consumer proposal

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BANKRUPTCY CONSUMER PROPOSALVS

Bankruptcy and Consumer Proposal

Di�erences between

BANKRUPTCY CONSUMER PROPOSAL

Who can claim?

Anyone who is insolvent and owes more than $1,000.

If your debts do not exceed $250,000 (excluding mortgage) and you are able to make monthly payments toward paying o� a portion of your debt.

$1000 $250K


Who can file?

Must be filed by a Licenced Insolvency

Trustee

Must be filed by a Licenced Insolvency Trustee


What does it cost?

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$Payment are based on income, non-discretionary

expences and household size.

A proposal amount is agreed between you and your creditors. A monthly payment is determined based on your debt and any assets. Administration costs are included in the monthly payment


For first time bankruptcies – a minimum of 9 months

Up to 5 years but may be paid o� early with no penalty

How long will it last?

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1 2 3 4 5YEARS

9MONTHS


Will I lose my assets?

Certain assets are surrendered depending which province you live in

No assets are surrendered


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Turned over to your creditors You are allowed to keep refunds

What about my tax refund?

$ $$


How will it a�ect my credit rating?

Your credit rating will show R9 for 7 to 14 years. This is the worst rating

Your credit rating will show R9 during the period of the proposal, and go to R7 once the proposal has been completed, with all payments made. This indicates you have made a settlement with your creditors

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R9$$

R7


Do I have to report monthly?

You must submit a report that details all income and expenses and include

pay stubs and certain receipts.

No monthly reports are required


Will it stop collections and wage garnishment?

Contact from creditors cease

upon filing

Contact from creditors cease upon filing

Here To Help You With Your Problem Debt

Toll-Free +1 800-463-8371www.lctaylor.com

bankruptcy vs consumer proposal

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