AHLAWAT & ASSOCIATES ADVOCATES
AHLAWAT & ASSOCIATES ADVOCATES
Spotting The Differences Between Consumer Proposal And Bankruptcy
AHLAWAT & ASSOCIATES ADVOCATES
If you are wondering what way to choose to put an end to your debts, there are two major insolvency solutions from which to choose.Let’s take a look on the Differences Between Consumer Proposal And Bankruptcy
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Filing with LIT or Licensed Insolvency Trustee
AHLAWAT & ASSOCIATES ADVOCATES
First Thing When comparing the differences between consumer proposal and bankruptcy, the first thing you need to understand is that both have to be filed by Licensed Insolvency Trustee or LIT.However, if your debt situation favors bankruptcy, the best option is to consult with a bankruptcy law lawyer to know if it is the right way to resolve the debts depending on your case.
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Consumer proposal is a better option When your debts are more than you can settle or handle, you might wonder whether to file a consumer proposal or bankruptcy. While the situation of every debtor differs, the following points highlight why consumer proposal is a better option than bankruptcy.
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Role of a trustee in consumer proposal If you lack the ability to afford credit counseling or obtain a debt consolidation loan, these alternatives can be used to pay to the creditors without getting into the burden of additional cost and the only options that are going to stay are consumer proposal or bankruptcy, and prevent the chance of being sued.
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Flexibility in consumer proposal With the system of a consumer proposal, you will experience flexibility in making the payment. A majority of the amount of consumer proposal is to be carried out through monthly payments to the trustee who is going to distribute the funds among the creditors.
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Choosing the option of bankruptcy If you want to get relief from the pressure of debts, bankruptcy is an ideal option although it differs from consumer proposal in many ways. When it comes to the role of trustee in dealing with bankruptcy and insolvency act, you must know the following. 1. The trustee can oversee your income. 2.They are going to file the income tax return in the year of filing bankruptcy.
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Conclusion Bankruptcy is one of the most viable options for those debtors who are unfortunate and are unable to repay their debts. For resolving the debts issues properly, the first step you need to take is to hire a professional and explore the options that are available and determine the best move.
Resource: https://www.doffitt.com/spotting-differences-consumerproposal-bankruptcy/
AHLAWAT & ASSOCIATES ADVOCATES
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