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Bankruptcy Or Consumer Proposal? How To Throw In The Financial Towel

The Huffington Post
Article from The Huffington Post comparing consumer proposals and bankruptcies.

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Here is an article from The Huffington Post Canada comparing bankruptcy and consumer proposals. It does a nice job of showing pros and cons of each though I think a few things are a bit unclear.

For example – filing for bankruptcy or a consumer proposal can cover any shortfall on secured loans if you are willing to give up the asset.

One place where this comes up regularly is if you owe $50,000 on a vehicle that is worth $15,000 (maybe you carried forward debt from a previous vehicle) – if you give up the vehicle the debt is included in the bankruptcy or proposal.

Check out the article here and let me know if you have any questions.

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Did You Know?

1

Many people who file for bankruptcy get to stay in their home.

2

In Newfoundland and Labrador, you can keep your RRSPs – even if you file for bankruptcy.

3

Many people who file for bankruptcy are able to keep their vehicle.

4

Most bankruptcies are NOT published in the newspaper.

5

Student loans can be included in a bankruptcy if they are more than seven (7) years old.

6

A consumer proposal is an alternative to bankruptcy that can only be filed with a licensed trustee in bankruptcy.

7

In NL, people ages 30 to 39 years old file for bankruptcy more than any other age group. [source]