What is the Right Option For Me: Bankruptcy or a Consumer Proposal? Top Deciding Factors Which May Help You to Make the Right Decision

by Rebecca Martyn on September 27, 2011

by Angela Marquis, client service specialist

At Hoyes Michalos & Associates Inc. we offer two solutions in dealing with your debt. One is bankruptcy. Bankruptcy means you assign everything (surrender) you own in exchange for the elimination of your debts. Everyone’s situation may be different and it doesn’t mean you will lose your assets.

Second is a consumer proposal. A consumer proposal is a repayment plan to your creditors and in most cases you will repay only a portion of the total amount of debt you owe. The amount you may pay depends on what your income is, who your creditors are and what assets you have.

Here are the top deciding factors to help you decide which option is best for you:

You might choose bankruptcy if:

• You have low Income
• You have no assets to lose
• You have never been bankrupt before
• You have a wage garnishment

You might choose a consumer proposal if:

• You are not low income
• You have assets you want to protect
• You want and have the ability to pay a portion of your debt back
• You don’t want to go bankrupt
• You debts are lower than $250,000 (not including your mortgage)
• You have a wage garnishment

If you would like to review which option is best for you, then call Hoyes Michalos & Associates at 519-351-2323 as we are here to help. We will set up an appointment to meet with you in Chatham and go over the options with you.

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