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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.

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.

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]