Consumer Proposal Versus Personal Bankruptcy

Couple getting help with money

Consumer Proposals

A consumer proposal allows you to make an offer to pay your creditors a portion or all of your outstanding debt over a specified period of time. An advantage of this option over personal bankruptcy is that you are able to retain control of your assets. The payment terms of the consumer proposal cannot exceed five years. Upon the creditors accepting and your meeting the obligations outlined in your proposal, you will receive a Certificate of Full Performance and be legally released from your debts.


Couple with paper

Personal Bankruptcy

A personal bankruptcy requires the Trustee to realize upon the debtor’s assets which are not exempt from seizure. This may be done by the debtor either turning the asset over to the Trustee for the estate or making an arrangement with the Trustee to retain the asset.


Upon the successful completion of this process, the bankrupt is discharged and released from all or most of his or her unsecured debt. Generally, a person may be bankrupt from nine months to 36 months depending on their income and whether they have been bankrupt before. There are other possible scenarios which could affect the length of the bankruptcy.


Both consumer proposals and personal bankruptcy require the expertise of a Trustee under the Bankruptcy and Insolvency Act. For more information on these and any other services, or to book a free initial consultation, please contact us at 204-944-0187 (toll free: 1-800-263-0070). If you would prefer, you can complete our First Step form.

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