Consumer Proposal or Bankruptcy: Which One Should You Choose?

Are you struggling to overcome your excessive debt load? At Bernier & Associates, licensed insolvency trustees in Gatineau and 14 other offices in Quebec and Ontario, we are determined to help you get your financial health back on track. Find out, from consumer proposals to personal bankruptcy, which solution best applies to your current situation.

Consumer proposal

Under the Bankruptcy and Insolvency Act, a consumer proposal allows you to make a realistic offer of repayment (based on your personal situation and your ability to repay) to your creditors. This allows you to settle your consumer debts (credit cards, lines of credit, loans) in the form of a monthly payment, for example, all without interest.

The consumer proposal is convenient in order to avoid seizure of your assets and to safeguard your job. Creditors' proceedings will be suspended as well as seizures on your wages. The mention in your credit record will be revoked after 3 years following the end of the process.

To be eligible, your debts must not exceed $250,000 excluding the mortgage on your principal residence.

Personal Bankruptcy 

The Bankruptcy and Insolvency Act also allows you to declare personal bankruptcy if your debts are large and you are unable to pay them. This relieves you of your financial burden, with the exception of a few debts (alimony, fines, student debts of less than 7 years, etc.).

Personal bankruptcy gives you a fresh start and frees you from the lawsuits of your creditors. Throughout the process, you must make a monthly payment based on your income and the number of people in the family unit. Your credit file will reflect your bankruptcy for a period of at least 6 years from the date of your discharge.

To qualify, you must be insolvent and have a debt of more than $1,000 and be unable to pay your obligations in the normal course of business. 

At Bernier & Associates, we will accompany you every step of the way to get you out of overindebtedness, whether you are in Gatineau or elsewhere in Quebec or Ontario. Whether you opt for personal bankruptcy or the implementation of a consumer proposal, we can help you. Contact us for a free consultation!