When I opened my Brantford office more than a decade ago the I filed about five bankruptcies for every consumer proposal. Today the ratio has narrowed, and in a typical month I file about the same number of consumer proposals and bankruptcies. Why? Because for many people in Brantford, a consumer proposal is a better option than bankruptcy.
I’ve made a list of the five reasons why a consumer proposal might be a better solution to deal with your debts than a bankruptcy in Brantford. The reasons are listed below, or you can watch the video:
1 Your bankruptcy payment each month is based on your surplus income. If your pay goes up, you pay more. In a consumer proposal, your payment never changes, even it your income increases. If you expect your pay to increase, or if you simply want the certainty of knowing what your payment will be each month, a proposal may be the solution for you.
2 In bankruptcy you lose some assets, like your tax refund, RRSP contributions in the past year, RESPs, investments, and possibly any equity in your house or car. In a consumer proposal, you keep all of your assets.
3 A consumer proposal is simple. Unlike a bankruptcy where you are required to submit proof of your income (paystubs and budgets) each month, in a consumer proposal there are no monthly reports required. You will meet with your administrator to work out a plan, and once it’s approved, that’s it! You simply make your payments each month until your plan is completed.
4 If a creditor objects to your bankruptcy ending (your discharge), you are required to attend a court hearing. Since a proposal is approved by the creditors at the start of the process, there is no court hearing.
5 Bankruptcy is a last resort. You file bankruptcy as a reaction when you have no other options. A consumer proposal is pro-active. You are taking charge of your situation. You are deciding what you can afford to offer your creditors, so you know you can handle whatever you propose.
A consumer proposal is not the correct solution for everyone, but if you have more debts than you can handle, and you want to avoid bankruptcy, arrange a no charge initial consultation with a licensed consumer proposal administrator and find out if a consumer proposal is the right solution for you.
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