Variance Between a Consumer Proposal and Bankruptcy

A consumer proposal is a non-bankruptcy option that allows you to combine your unsecured debt and repay all or part of it in monthly installments, lump sums, and interest-free amounts over a five-year period with the consumer proposal for debt . A consumer proposal is a legally binding agreement that may only be made by a Licensed Insolvency Trustee (LIT). Your trustee will work with you to submit a proposal to your creditors, either to adjust your payments or to return only a portion of what you owe. After then, your creditors will vote on whether or not to accept your offer. The amount you must pay is usually divided into monthly payments to your manager over a period of no more than five years in most plans. You can, however, pay in one lump amount or a mix of lump sum and monthly installments. What is a Consumer Proposal? A Consumer Proposal is a one-of-a-kind debt solution that allows you to settle your debts for less than you owe by negotiating a "deal" with your credit...

  Filing for Bankruptcy or submitting a consumer proposal are viable options for debt relief. But how do they are different from one another? While both provide legal protection from creditors and function similarly in terms of outcomes, they have many important differences. Understanding your debt relief options will come in handy when dealing with debt-related stress and anxiety.   Do you want to know how to use consumer proposal bankruptcy filings to get out of debt? Continue reading to learn about the key differences between the two. What exactly is a consumer proposal?   A consumer proposal is a formal agreement filed between you and your creditors. It is designed with the assistance of a licensed insolvency trustee, who will assist you with debt relief and repayment strategies. The contract will usually require you to pay a portion or all of your debt over a set period.   Consumer proposals are useful because they assist you in reducing your debt in a co...