Advantages of a Consumer Proposal Over Bankruptcy

• It Avoids bankruptcy while resolving your financial difficulties by making a deal with your creditors and settling down your debts to a reduced amount.
• It Immediately stops existing legal action from unsecured creditors including wage garnishments and asset seizures.
• You are able to retain your assets (Vehicle, Home, Investments, Pensions, etc.)
• Protects you from receiving collection calls and new legal action from unsecured creditors including the Canada Revenue Agency for income tax debt and GST debt.
• It forces all your unsecured creditors to communicate with the Proposal Administrator instead of dealing with you directly.
• It stops Interest immediately from accumulating on your unsecured debt.
  Once your Proposal is accepted by more than half of your creditors in dollar value, the contract becomes legally binding on all of your unsecured creditors.
• It enables you to make one small monthly payment every month, interest-free.
• Proposal can be paid off at any time upon its approval in one lump-sum payment.
• It allows a Directors of any Corporation to maintain his or her own business by re-structuring the business debt and getting protection from its creditors.
• If you’re considering sponsoring a family member through the (Immigration Process). A bankruptcy filing could stall the process, whereas a Consumer Proposal would not.
• It gives a less negative impact on your credit rating i.e. R7 than a Bankruptcy i.e. R9.