Consumer proposal or bankruptcy should always be considered as a last resort. Not all who apply are approved for bankruptcy or consumer proposal and if you are, you will still have to pay off some of your debts, plus fees. Filing for consumer proposal or bankruptcy also stays on your credit report for years, which makes it harder to rebuild your credit and secure your financial future.

Myths about Bankruptcy
and Consumer Proposal

A consumer proposal or bankruptcy should always be considered last resorts. Try consolidating your debts or talking to lenders about more flexible payment options first.

Myth #1
All debts will be paid

Myth #2
I will no longer have
to make payments

Myth #3
Anyone can file for bankruptcy

Myth #4
I will not lose my home

Myth #5
It will fix my financial problems forever

FACT : Secured debts, child support or alimony, student loans (if you've been out of school for less than seven years), court fines and any debts related to fraud you would still be responsible for if you file for bankruptcy or consumer proposal.

FACT: You will still have to pay for secured debt such as a mortgage and such things as child support. A consumer proposal is an agreement to pay back some of what you owe and has fees. A bankruptcy also costs money to file and you might have to pay extra toward your debt.

FACT: A consumer proposal protects assets such as your house, but the equity in your house will affect how much you'll have to pay or whether you'll qualify for a proposal. With bankruptcy, the law requires you to use equity to pay off some of what you owe to your creditors.

FACT: A consumer proposal protects assets such as your house but the equity in your house will affect how much you'll have to pay whether you'll qualify for a proposal. With bankruptcy, the law requires you to use equity to pay off some of what you owe to your creditors.

FACT: Many people end up doing more than one consumer proposal, especially if the reasons they got into debt don't change. Consumer proposals and bankruptcies give you a negative credit score that lasts for years, which makes it harder to rebuild credit and secure your financial future.

A consumer proposal or bankruptcy should always be considered last resorts. Try consolidating your debts or talking to lenders about more flexible payment options first.

Myth #1
All debts will be paid

FACT : Secured debts, child support or alimony, student loans (if you've been out of school for less than seven years), court fines and any debts related to fraud you would still be responsible for if you file for bankruptcy or consumer proposal.

Myth #2
I will no longer have
to make payments

FACT: You will still have to pay for secured debt such as a mortgage and such things as child support. A consumer proposal is an agreement to pay back some of what you owe and has fees. A bankruptcy also costs money to file and you might have to pay extra toward your debt.

Myth #3
Anyone can file for bankruptcy

FACT: A consumer proposal protects assets such as your house, but the equity in your house will affect how much you'll have to pay or whether you'll qualify for a proposal. With bankruptcy, the law requires you to use equity to pay off some of what you owe to your creditors.

Myth #4
I will not lose my home

FACT: A consumer proposal protects assets such as your house but the equity in your house will affect how much you'll have to pay whether you'll qualify for a proposal. With bankruptcy, the law requires you to use equity to pay off some of what you owe to your creditors.

Myth #5
It will fix my financial problems forever

FACT: Many people end up doing more than one consumer proposal, especially if the reasons they got into debt don't change. Consumer proposals and bankruptcies give you a negative credit score that lasts for years, which makes it harder to rebuild credit and secure your financial future.

Have your circumstances changes unexpectedly, and bankruptcy/consumer proposal seem to be your only options?

WE CAN HELP 
Please call us immediately at 1-855-441-3279 to see how we can help. You may know that bankruptcy or consumer proposal can stay on your credit record for several years and set your financial goals back even further. We can assess your options for the loan you have with us, to help easy your situation.