  
    Bankruptcy
    Consumer Proposal
  

    Total amounting owing is more than $1,000.
    Total amount owing must be less than $250,000 (not including mortgage).
  

    Creditors are informed within 5 business days once filed.
    Creditors are informed within 10 days once filed.
  

    No voting required.
Creditors cannot stop the process once filed
    Creditors will vote for or against the proposal.
Creditors have 45 days from the date of filing to vote. If voting against, creditors can provide a counter-offer.
  

    A monthly payment is based on your income and value of assets.
    A monthly payment is based on a percentage of the total debt owing.
Majority of creditors must agree on fixed payment.
      
  

    Payments can increase.
 The more you earn, the more you will pay. If surplus income occurs, you will be required to contribute to the estate.
    Payments will not change during the duration of your proposal.
 If you suspect your income to increase, a proposal is best.
  

    9 months to 21 months.
 First time bankrupt.
    Up to 5 years.
 Depending on your monthly payment but cannot exceed 5 years.
  

    Creditor protection.
Stops harassing calls and collection letters from creditors.
    Creditor protection.
Stops harassing calls and collection letters from creditors.
  

    Must attend 2 counselling sessions.
First within 60 days and second within 210 days.
    Must attend 2 counselling sessions.
First within 60 days and second within 210 days.
  

    Must supply monthly income statements.
A monthly budget for all income and expenses and copies of paystubs must be submitted.
    No income statements required.
  

    You will not receive your tax refund.
    You will receive your tax refund.
  

    You may not receive your GST/HST refunds.
    You will receive your GST/HST refunds.
  

    Required to surrender assets if applicable.
    You can keep your assets (home, vehicle, RRSPs).
  

    Credit Rating of R9.
Will remain on your credit report for 6 years after discharge for a first time bankruptcy.
    Credit Rating of R7 or R9.
Will remain on your credit report for 3 years once payments have been completed to your creditors.
  

Bankruptcy	Consumer Proposal
Total amounting owing is more than $1,000.	Total amount owing must be less than $250,000 (not including mortgage).
Creditors are informed within 5 business days once filed.	Creditors are informed within 10 days once filed.
No voting required. Creditors cannot stop the process once filed	Creditors will vote for or against the proposal. Creditors have 45 days from the date of filing to vote. If voting against, creditors can provide a counter-offer.
A monthly payment is based on your income and value of assets.	A monthly payment is based on a percentage of the total debt owing. Majority of creditors must agree on fixed payment.
Payments can increase. The more you earn, the more you will pay. If surplus income occurs, you will be required to contribute to the estate.	Payments will not change during the duration of your proposal. If you suspect your income to increase, a proposal is best.
9 months to 21 months. First time bankrupt.	Up to 5 years. Depending on your monthly payment but cannot exceed 5 years.
Creditor protection. Stops harassing calls and collection letters from creditors.	Creditor protection. Stops harassing calls and collection letters from creditors.
Must attend 2 counselling sessions. First within 60 days and second within 210 days.	Must attend 2 counselling sessions. First within 60 days and second within 210 days.
Must supply monthly income statements. A monthly budget for all income and expenses and copies of paystubs must be submitted.	No income statements required.
You will not receive your tax refund.	You will receive your tax refund.
You may not receive your GST/HST refunds.	You will receive your GST/HST refunds.
Required to surrender assets if applicable.	You can keep your assets (home, vehicle, RRSPs).
Credit Rating of R9. Will remain on your credit report for 6 years after discharge for a first time bankruptcy.	Credit Rating of R7 or R9. Will remain on your credit report for 3 years once payments have been completed to your creditors.

Bankruptcy

Consumer Proposal

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