Not sure if Bankruptcy or a Consumer Proposal could be the right options for your personal debt management? Learn more with our Frequently Asked Questions, and Sean Stack's answers.
Yes, these include:
For a first time bankrupt, i.e.: someone who has never been bankrupt before, bankruptcy is usually either 9 months or 21 months depending on their income. For a second time bankrupt, i.e.: someone who was bankrupt once before, bankruptcy is usually either 24 months or 36 months depending on their income. Sean can walk you through how income affects a bankruptcy and what you can expect based on your own personal situation.
The cost of bankruptcy varies as it depends on what your household income is and also what equity you have in assets that you own. This is something that Sean will discuss with you during your free initial consultation.
When the Consumer Proposal is filed with the trustee there is a ‘Stay of Proceedings’ the prevents creditors from contacting your or taking action against you. The creditors get 45 days to vote on the proposal. Each dollar owing to a creditor is equivalent to one vote. If the majority of unsecured creditors vote in favour of the proposal then all the unsecured creditors are bound by it.
A Consumer Proposal can be for no more than five (5) years but depending on your situation it can be for less time as well.
The total cost of a Consumer Proposal depends primarily on what your household income is and what assets you own.