What’s the difference between a consumer proposal and a bankruptcy?

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A bankruptcy and a consumer proposal are both legal debt relief options available to you when you are not able to manage your debt. They are an effective way to eliminate or reduce your debt. These two options can protect you from legal actions including, harassing collection calls and notices, wage garnishment and more.

 

A consumer proposal allows you to reduce your debt load and is a legal process between you and your unsecured creditors in which you repay a portion of what you owe them. The amount to be repaid is based on your income, assets and debt load.

 

A bankruptcy eliminates most debts, and most legal proceedings against you by creditors should stop. In this process you would assign certain assets to a Licensed Insolvency Trustee; in most circumstances you will be able to keep your assets.

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How do I know what is the best solution for my situation?

 

When meeting with our dedicated staff members they will review in detail your current situation, including debt load, income, assets, and family situation. We understand that this can be a stressful time.  We are here to address all of your concerns and to find the best course of action that works for you.

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Will I lose my house and vehicle, RRSPs and RESPs?

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In a consumer proposal, secured assets like your home and vehicle are not included. If you are able to maintain the payments up to date you can keep secured assets. In a bankruptcy, the majority of clients keep their home, vehicle, RRSPs and RESPs. In some cases, a person declaring bankruptcy may not be able to keep these assets.  We will be able to address your concerns regarding all of your assets, as every situation is different.

 

What happens if my debts are co-signed?

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Filing a consumer proposal or a bankruptcy will not cancel the responsibility of anyone who has guaranteed or co-signed a loan on your behalf. For example, if your spouse co-signed a credit card for you, they would continue to be responsible for the outstanding debt.

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Are all my debts eliminated when I file?

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In most cases all unsecured debt will be eliminated by filing a consumer proposal or a bankruptcy. However, there are various debts that would not be eliminated and you would be responsible to maintain the payments. These debts would normally be any fine, penalty or restitution order made by the court, parking or speeding tickets, spousal or child support, any award for damages in respect of an assault, and student loans that are less than seven years old since your last study date.

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Can my Canada Revenue Agency (“CRA”) debt be included?

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Dealing with CRA for amounts owing for personal income tax, HST, and/or source deductions can be stressful and overwhelming.  A consumer proposal or a bankruptcy can assist you in dealing with these debts.  We have over 20 years of experience dealing with CRA and are able to provide you with a helpful solution to eliminate or significantly reduce these amounts.

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What happens if someone has started legal action against me?

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Legal actions and wage garnishments against you stop on the date you file a consumer proposal or a bankruptcy. However, criminal actions and some civil matters, such as child support are not included.  Our Licensed Insolvency Trustees will review any and all legal documents to guide you in making the right decision.

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Am I still able to work/ operate a business?

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Yes, you are able to continue working. However, we encourage you to contact our office to discuss your particular situation.

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Do I continue to deal with my creditors once I file?

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One of the main objectives of filing a consumer proposal or a bankruptcy is to relieve you from the pressure of having to deal with your creditors. Once you file, by law,  we would then deal with your creditors directly. If you continue to get phone calls or mail simply forward the information to our office and we will take care of it for you.

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What is a Licensed Insolvency Trustee?

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A Licensed Insolvency Trustee is the only professional authorized to administer government-regulated insolvency proceedings that allow you to be discharged from your debt, such as a consumer proposal or a bankruptcy. 

 

When dealing with Sheriff Sole & Madej Inc. you can be confident that you are working with a company that has demonstrated that they have the knowledge, experience and skills to be granted a license from the Office of the Superintendent of Bankruptcy.

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How can Sheriff Sole & Madej Inc. help me?

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Our commitment is to help each client find the best, most efficient and cost effective way to resolve their debt situation. We follow these four steps designed to achieve maximum results:

 

Analyze: We do a detailed analysis of your financial situation. We will work with you to collect the necessary documentation and information in order to better understand your position so that we are able to find the best solution based on your needs.

 

Educate: We spend the time to educate you about all of the available options. Our goal is to make sure you understand the details of each solution so that you can weigh the pros and cons to make an informed decision.

 

Plan: We formulate and execute the best plan to eliminate or reduce your debt as quickly as possible.

 

Recovery: Sheriff Sole & Madej Inc. will provide you with the tools and knowledge to rebuild and successfully manage your credit in the future.

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