If you are experiencing serious financial problems you need professional advice and a plan of action. The first thing that you should do is contact a licensed trustee. A licensed trustee is a federally regulated professional who will evaluate your situation and help you to arrive at the best possible solution for your problems. Consumer proposals and personal bankruptcy are two options for insolvency. Which is right for you?
| CONSUMER PROPOSALS | PERSONAL BANKRUPTCY |
| Stops creditors from taking legal action against a debtor | Stops creditors from taking legal action against a debtor |
| Requires a licensed trustee | Requires a licensed trustee |
| Your total debt cannot exceed a $250,000 (excluding a mortgage) | If you owe more than $1,000 you are eligible & no limit on the amount of debt |
| Your monthly payment is fixed | Monthly payments may vary as they are based on your income and assets |
| You retain your assets | Certain assets may have to be seized by the Trustee |
| No monthly tasks or reporting | Monthly income and expense reporting is required |
| You are still entitled to all tax refund(s) and/or credits which you are owed. | Tax refunds for the year of your bankruptcy and any prior unfiled years will be forfeited |
| After the completion of a consumer proposal your credit rating is R7 | After a bankruptcy your credit rating is R9 |
| A Consumer Proposal will appear on your Credit Report for three years after completion | A first Bankruptcy will appear on your Credit Report for six to seven years (in Ontario) after your final discharge from the Bankruptcy (14 years for a second Bankruptcy) |
Ira Smith Trustee & Receiver Inc. can provide you with solutions to your financial problems and with a plan of action, Starting Over, Starting Now we can help you achieve your goal of a debt free life. Take the first step and contact us today.