The major difference between the consumer proposal and bankruptcy is that the consumer proposal gives the person more rights on their assets. It means that the person can learn more of their assets. And also, it has less effect on the credit score of a person. That can stay of only three years in comparison to 6 years of the bankruptcy. But both of the solutions are made to clear out the debt on the person. In a consumer proposal, the person gives some percentage of amount of debt money. And can hold more of their assets. Then pay the rest amount after some time. Or can be paid monthly or annually depends on the condition of the person.
Whereas in bankruptcy, the asset will be sold out. And from selling those assets the debt amount will be cleared. But in a consumer proposal, not many items will be sold. The person needs to pay some percentage of the debt amount to the creditor and can possess more of their assets. And the rest amount which will be paid monthly or something will be decided by the committee. It depends upon the income of the person and what the person has in their asset list. So, just choose wisely which one to go with.
According to the experts, the consumer proposal is good to go with
Many financial experts suggest that consumer proposal is the best solution in, debt relief solution. Because in consumer proposal the person needs to pay some fixed amount decided by the person and the creditor. And it is good so, even a person is making some more money at some time. They only need to give only a fixed portion of their money. And it also allows possessing more assets. So, it is better to go with it.
Consumer proposal mainly have a lower monthly payment
In a consumer proposal, the monthly payment is always lower. But when a person filed bankruptcy, they need to show the trustees about their growth in income. And that could trigger the surplus charges on recovering the debt amount. While in a consumer proposal, the monthly amount doesn’t change and is less than bankruptcy.
Get help from the professions
Always take help from the professional. Because they are the person who regularly deals with such a case. So, it is better to ask their advice on this case. In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100