Is a Consumer Proposal or Bankruptcy “The Easy Way Out”?
If creditors are chasing you for money you don’t have, it can be stressful.
Both these facilities provide you with some legal protection from creditors.
But are they really an “easy way out?”
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If your friends and family know that you owe a lot of money, they will often recommend that you go bankrupt.
Usually, the way that they present the idea makes it seem effortless.
You made some financial errors, you got into a pile of debt, and now you need a quick way out so that you can put your life back on track.
It all seems so straightforward.
On a personal level, though, you might find this suggestion offensive.
Ideally, you’d like to repay the people who lent money to you because you’re not the type of person who reneges on your obligations.
You certainly don’t want to take the easy way out!
If you have these feelings when approaching bankruptcy or a consumer proposal, you’re not alone.
Many people experience similar thoughts.
They don’t want to feel like they are side-stepping their obligations.
The Truth About Bankruptcy And Consumer Proposals
So are bankruptcies and consumer proposals an “easy way out” as people like to claim?
Or is it more complicated than that?
In truth, neither consumer proposals nor bankruptcies rob you of the ability to repay debts.
Rather, these facilities make it easier for you to make good on your obligations by providing you with legal protections.
Trustees acting on behalf of creditors are usually understanding and compassionate people.
They know that the vast majority of people don’t deliberately get into mountains of debt.
Instead, it is just something that can happen, even to people who have the best of intentions.
Trustees are, therefore, not there to punish you.
Instead, their job is to create a win-win outcome for all parties.
They ensure that you create a sensible repayment schedule (if you can afford it), allowing you to honour your obligations.
And from this, they then provide your creditors with a stream of income.
Importantly, trustees remind you that consumer proposals and bankruptcies aren’t a sign of weak character.
It doesn’t mean that you’re unwilling to repay the money that you owe people.
Instead, it is a tool that you can use to help yourself and your creditors.
Ultimately, it can be the best option for all concerned.
If you’re still worried about filing for bankruptcy or a consumer proposal, then you should seek professional help.
Bankruptcy experts can help you navigate the process, choose the facility that is right for you, and ensure that you keep your integrity.
Finding yourself in financial trouble is no shame.
It’s just a problem that needs solving.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal
How to File for Bankruptcy
What is Bankruptcy?
How Does Bankruptcy Work?
What is the Cost of Bankruptcy in Canada?
How to Rebuild Credit Following Bankruptcy
Personal Bankruptcy in Canada
What Debts are Erased in Bankruptcy?