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Ottawa Bankruptcy vs Consumer Proposal which is better?
Welcome to our Bankruptcy vs Consumer Proposal Ottawa resource page. When faced with overwhelming debt our Ottawa clients ask: “Which is better, filing for personal bankruptcy or submitting a Consumer Proposal?” Finding a solution to your money problems may be easier than you think! Let’s look at both alternatives for the best debt solution for your situation.
Personal Bankruptcy as a Debt Solution
There are basically 3 types of bankruptcy in Ottawa. They are Voluntary Assignment, Involuntary Assignment & Deemed Bankruptcy. Let’s quickly define all three.
What is Voluntary Assignment In Bankruptcy?
Voluntary assignment is where an insolvent person, without being forced by law, makes an assignment of all their assets for the general benefit of all their creditors. Any surplus money would be returned to the debtor. Voluntary assignment is the most commonly used form of bankruptcy in Ottawa.
What Rights Does an Bankrupt Have?
It is not illegal to be Bankrupt, but of course, there are rules to abide by but they are mostly common sense.
The Benefits of Personal Bankruptcy
You eliminate most of your debt however some debts may survive such as student loans, alimony/support, and a few others. You are able to resume your life without making most debt payments and you retain a larger part of your income. You get the monkey off your back and you can finally breathe easier. You may actually want to answer your phone!
The Downside of Bankruptcy
Your credit rating & score will be affected. You will be required to attend counseling sessions where debt and spending habits will be discussed. (which most people find very helpful)
What does filing for bankruptcy cost?
The cost of your bankruptcy will depend on a few factors such as your family income, the size of your household, previous insolvencies, and are regulated by the federal government.
Yes, I would like to speak privately with Jean about my financial situation.
What is a Consumer Proposal?
A consumer proposal is a binding legal agreement with your unsecured creditors whereby you undertake to pay back your debt without interest. This debt can be compromised and your proposal can be paid in a lump sum, by payments not exceeding five years and or a combination of both.
How much does a consumer proposal cost in Ottawa?
Licensed Insolvency Trustees (LIT’s) are the only people that can help you file a consumer proposal. So the administrators (LIT) fees are regulated by law and the fees usually come out of the payments you make. There are no additional fees tacked on.
Three reasons why a Consumer Proposal is worth it?
- You will probably pay less money back than what you originally owed.
- The interest stops on most of your debts.
- Your proposal can be made over a maximum of five years.
*Bonus Reason: Your going to feel alot better that you have gained control of your debt!
Qualification for a Consumer Proposal
You must be an insolvent person as defined in the Bankruptcy and Insolvency Act. (BIA) Your unsecured debt must be less than $250,000 excluding the mortgage(s) on your principal residence. You must be able to meet the obligation you presented to your creditors in your consumer proposal.
What unsecured debts can I include in my credit proposal?
All of your unsecured debt can for part of your consumer proposal such as, loan, lines of credit, credit cards, income tax etc… However certain creditors have a special status under the law where by their debt may survive.
How long does a consumer proposal stay on your credit report?
Your credit will be affected while you are under your consumer proposal and will slightly get better once you have completed it.
The Three Great Benefits of a Consumer Proposal
- You can make payments you can afford.
- The pressure created in your life around debt will be somewhat relieved. Collection calls and wage garnishments will stop.
- You will be able to potentially write off a great portion of your debt.
The Downside of Submitting a Consumer Proposal
can Your credit will be affected.
Do you need help eliminating your debt? Call 613-567-4357 and speak with Ottawa Licensed Insolvency Trustee Jean Lazard. Jean will explain the difference between filing for bankruptcy or submitting a consumer proposal. He help you take control of your finances so you can get your life back on track.
Here are some 2020 Bankruptcy & Consumer proposal Statistics for Ontario, Quebec, BC and Alberta.
| Province | Bankruptcies June 2020 | Proposal June 2020 | 2019 +/-% Bankruptcies | 2019 +/-% Proposal |
| Ontario | 699 | 1733 | -45.2 | -28.4 |
| Quebec | 858 | 895 | -45.2 | -47 |
| British Columbia | 174 | 433 | -42 | -36 |
| Alberta | 260 | 618 | -42.5 | -36 |
Take the First Step
We encourage you to take the first step today. The sooner you act the better things will be, leaving it will only make matters worse. Call our office and arrange a free consultation & regain control of your finances today. Leaving it too long will diminish your options often leaving you with bankruptcy the only way out.
You can also click here to take our free online evaluation!
HOW WE CAN GET YOUR LIFE BACK TO NORMAL.
We’ll show you how to …
Stop Collection Calls
Once you have filed you will legally receive protection from most of your creditors.
Wage Garnishment
Most wage garnishments will cease & you will be able to enjoy your full paycheque.
Get Credit Counselling
We will make sure you get the credit counselling necessary to help you understand how to manage your finances better.
Budget & You
Actual budgeting allows you to plan your life and remain debt-free.
Rebuild Your Credit
We’ll show you how and when to start rebuilding your credit.
Take the first step. Call for your free consultation today!
Jean Lazard
Licensed Insolvency Trustee
I am the President and the sole Licensed Insolvency Trustee for the firm. I have been a Trustee since 1999. Over the years I have helped thousands of people whose lives have been turned upside down because of debt.
I hold a dual license, which means I can accept files in Ontario and Quebec. It is very important to me, that clients dealing with my firm have a positive experience in an otherwise not so pleasant part of their lives.
My team and I will always treat you with respect and dignity. We will always provide you with the information you need in order to make the best decision possible when dealing with your debt.
Let me and my team show you why you’ve made the right decision in choosing Lazard & Associates Inc. in your search to find a solution to dealing with your financial difficulties.
Alexandre Lazard
Sr. Estate Manager
Hello, my name is Alex Lazard and I am the estate and daily operations manager of the firm under my father and LIT Jean Lazard, President of Lazard & Associates Inc. I deal with all aspects of the insolvency process – from administration to answering calls and speaking with your creditors.
Together, my father and I continuously adapt and find creative debt relief solutions for eastern Ontarians during this ever changing financial climate.
I am currently working to obtain my Insolvency Trustee License under the guidance of my father, in hopes of partnering with him and to gain greater knowledge and depth in the Canadian insolvency process. You really can’t ask for a better tutor!
As a firm, our commitment to our clients is unprecedented. If you need help and don’t know where to turn or who to call; it would be our pleasure to assess your situation over a free consultation. You will see the difference that I, my father and Lazard and Associates Inc. will provide to you.
Call us, we understand!