A Consumer Proposal may be a better option than bankruptcy for a number of different reasons, including:
- An individual can retain assets that may be available to creditors in a bankruptcy;
- An individual can continue to be a director of an incorporated company;
- An individual’s professional accreditation may not be at risk, whereas in a bankruptcy, there may be issues;
- The Consumer Proposal remains on the individual’s credit report for three years following completion of the terms, whereas bankruptcy is noted for a minimum of six years following a discharge, and;
- Creditors receive more from a Consumer Proposal than they do from a bankruptcy and, for that reason, are more inclined to accept the arrangement to settle the debt.