Your circumstances will dictate which is better for you; a bankruptcy or a consumer proposal.
If you donâ€™t have a lot of assets to protect or live in a province that has high asset exemptions so your assets are not subject to being seized, then a bankruptcy may be the better choice for you.
A bankruptcy can have you out of bankruptcy or discharged in 9 months. A bankruptcy is usually cheaper than a consumer proposal and you usually can rebuild your credit after bankruptcy quicker than if you file a consumer proposal.
Provinces with low bankruptcy exemptions, such as Ontario, which has no home exemption, file more consumer proposals proportionately than other provinces such as Alberta which has an exemption for home equity of $40,000.00. Ontarioâ€™s rate of consumer proposals filed compared with bankruptcies filed is one to one, while Alberta residents file 2 bankruptcies for every consumer proposal filed. (Statistics for the year ended April 30, 2012.)
Here is a check list to help you decide:….