A Consumer Proposal is a settlement offer you make to your creditors, who vote on your offer. Bankruptcy is a notice to your creditors that you are unable to pay, no vote required.
A Consumer Proposal tells your creditors that even though you cannot afford to pay all of your debt, you can pay a portion of it. The creditors then vote on your offer. A Consumer Proposal can spread payments over a maximum of 5 years, interest-free.
Bankruptcy allows you to advise your creditors that you cannot afford to pay even a portion of your debts. The creditors do not vote. For those without assets* or with a limited income, Bankruptcy is generally faster and less costly than a Consumer Proposal.
*In most cases, Bankruptcy does not affect a person’s house or car. Talk to us for more information.
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