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Consumer Proposal vs Bankruptcy- What's the Difference?
- 1. $ $ $ $ BANKRUPTCY CONSUMER PROPOSALVS Differences between Bankruptcy and Consumer Proposal BANKRUPTCY CONSUMER PROPOSAL Who can claim? Who can file? 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 off a portion of your debt. $1000 For first time bankruptcies – a minimum of 9 months Up to 5 years but may be paid off early with no penalty Must be filed by a Licenced Insolvency Trustee Must be filed by a Licenced Insolvency Trustee What does it cost? $ $ $ $ The minimum monthly payment is $200 for 9 months based on your income 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 How long will it last? $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Will I lose my assets? 1 2 3 4 5 YEARS 9 MONTHS Certain assets are surrendered depending which province you live in Turned over to your creditors You are allowed to keep refunds No assets are surrendered What about my tax refund? How will it affect my credit rating? Do I have to report monthly? Will it stop collections and wage garnishment? $ 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 $ R9 You must submit a report that details all income and expenses and include pay stubs and certain receipts. No monthly reports are required Contact from creditors cease upon filing Contact from creditors cease upon filing $250K $ $ $ $ R7 Toll-Free +1 800-463-8371 Here To Help You With Your Problem Debt www.lctaylor.com