Credit Counselling / Consumer Proposal / Bankruptcy – What are the differences?
Credit Counselling
- is an alternative to bankruptcy and a consumer proposal
- is a voluntary program where creditors agree to reduced monthly payments and usually stop interest charges
- remains on your credit bureau 2 years after successful completion.
Consumer Proposal
- is a legal process handled by a Licensed Bankruptcy Trustee
- you make a reduced monthly payment on a portion of your debt
- the same rules and regulations as Bankruptcy
- remain on your credit bureau for 3 years after successful completion.
Bankruptcy
- Is a legal process handled by a Licensed Bankruptcy Trustee
- your debts are discharged
- you must abide by the Bankruptcy rules and regulations
- remains on your credit bureau for 7 years.
If you are considering a Consumer Proposal or Bankruptcy, see Questions to Ask a Bankruptcy Trustee .
