Have you reached the stage where you have to choose between bankruptcy or a consumer proposal ? Please take the time to read the following. Before registering as a personal bankruptcy or commercial, start by consulting the licensed insolvency trustee.
They're here to help you determine if it's the ideal solution for your situation.
If you consult a property manager, you may find that the choice is yours between bankruptcy or proposal.
If this is the case, here are a few tips to help you determine which of bankruptcy or proposal is best for you. best suited to suit your situation.
Bankruptcy or proposal: The main points
Before you decide which of these solutions is right for you, it's a good idea to know the basics about each one.
Personal or commercial bankruptcy
Personal bankruptcy is an effective solution to quickly regain financial equilibrium. It's a solution of last resort to eliminate as much debt as possible. However, it is not without consequences. Visit personal bankruptcy has a negative impact on your credit rating. Bankruptcy could prevent you from taking out loans for many years to come. Nor does it prevent you from incurring new debts.
With regard to commercial bankruptcyThis is a legal solution that allows you to free yourself from your debts. by liquidating assets and closure of the company.
Consumer proposal and composition
A consumer proposal is a very interesting option. It allows you to eliminate up to 80 % of your debts sans que vous ayez à déclarer faillite. Cette dernière met un point final à l’augmentation de vos dettes. Comment ? En arrêtant les intérêts et en réduisant le paiement mensuel de vos dettes. Vous n’aurez donc plus à subir le harcèlement de vos creditors ou à craindre la saisie de votre salaire, ou toute autre action judiciaire.
On the commercial side, the composition proposal is an agreement between your trustee in bankruptcy and your creditors. It allows your business to continue operating. It also provides you with the time you need to repayment of your debts.
Bankruptcy or proposal: How do I decide which solution is right for me?
Now that it's time to choose between bankruptcy or proposal, here's how to help you determine which solution is right for you.
Who's entitled to bankruptcy?
What's good to know about bankruptcy is that any individual or company with more than 1,000 $ in debt and unable to repay is eligible to declare bankruptcy. Even if it's a last resort, it's a solution that's available to you, whatever your situation. On the other hand, you should consider the proposal if you qualify.
And the proposal?
As far as the consumer proposal is concerned, it is mainly aimed at people who to meet their commitments. Especially if they are in a position to assume part of the sums owed. This depends on your situation and whether you can get by without declaring bankruptcy. If all you need is lower monthly payments and more time, the could be your solution.
Here are the two essential criteria for benefiting from the consumer proposal:
- You can no longer afford your monthly credit card payments, bank charges or taxes;
- You owe between 1,000 $ and 250,000 $ (up to 500,000 $ in the case of a joint proposal).
The composition proposal, for companies, offers an interesting solution for those wishing to avoid bankruptcy. It allows you to continue your business activities while you releasing from inputYour trustee will also negotiate repayment with creditors, depending on your situation. Your trustee will also negotiate repayment with creditors, depending on your situation.
Bankruptcy or proposal: The conclusion
Between bankruptcy and proposal, the proposal is often much more interesting, because the negative impacts are reduced. Unlike bankruptcy, the proposal also makes it possible to protect your assets and protect you from harassment by your creditors.
Pour avoir plus d’information sur la faillite ou la proposition, n’hésitez pas à demander de l’aide auprès du groupe N.Séguin Inc. Un conseiller en financial turnaround expérimenté se fera un plaisir de répondre à toutes vos questions.
