In What Situations Would Personal Bankruptcy Be a Good Option?
There are several reasons why bankruptcy may suit your situation better than a consumer proposal:
- You have few assets to lose, or you may have accepted letting a significant asset go. If you have an expensive vehicle or large home, you may be relieved to be rid of this asset which created financial trouble for you.
- You have little income and are not expecting a significant increase in income. Your payments are based on your income and what you own, so if both are low, bankruptcy may be cheaper than filing a consumer proposal. By contrast, if your average surplus income exceeds $200/month, your bankruptcy could be extended an extra year, from nine to 21 months.
- Your income is uncertain. If you do not have a secure job or family commitments, you may not want to commit to the fixed monthly payments involved in a consumer proposal.
- You want the fastest process possible. In most situations, bankruptcy will be finished sooner than a consumer proposal. There is relief in knowing your financial concerns will end quickly.