3 Reasons Why Consumer Proposal Can Be a Good Idea

Are you getting deeper and deeper in debt? Maybe you cannot see any way out but taking out bankruptcy in Victoria or Nanaimo BC. Things may not be as bad as they seem and 4 Pillars Consulting Group can show you all your options including information on filing a consumer proposal, and it may take care of your financial problems. Here are three reasons to consider this option.

Consumer Proposal or Bankruptcy – What is the Difference?
With bankruptcy in Canada, you surrender some of your assets, and unsecured debts get discharged. With a consumer proposal, you submit a proposal to your creditors for setting debts. This is usually a percentage of the total amount owed. Both options are covered by the Bankruptcy Insolvency Act.

1. Bankruptcy is the most significant impact on your credit rating
When you file for bankruptcy, your credit report will show as an R9 and the public record will report a bankruptcy. Even when this is removed from your credit rating there will be times you are asked if you have declared bankruptcy and must answer yes

2. You Lose Assets in Bankruptcy
You must surrender your tax refund when you take out bankruptcy. It is possible to lose many other things depending on your situation. You could lose your home or the equity in your home. In Victoria, you can keep as much as $12,000 in home equity, but you can only keep one car (value to $5000).

3. Fewer Hassles with Consumer Proposal
There are fewer hassles and things to do when you file a consumer proposal. To find out more about this financial strategy and many others which may help you, click here to visit our contact page and request a call from your 4 Pillars debt consultant. We are here to help you make the right decisions with the least amount of stress.