Bankruptcy vs. Consumer Proposals in Edmonton

Finding the Right Debt Solution for You

Are your creditors calling? Are your wages being garnished? Do you need help climbing out of a surmounting pile of debt? Unsure whether you should file a bankruptcy or a consumer proposal? Let A.C. Waring & Associates Inc. help you find the right debt solution for your needs.

What are the differences between filing a bankruptcy vs. a consumer proposal in Edmonton, anyway? A consumer proposal is just what it sounds like – we work with your creditors to try and reach a settlement if you’re having trouble making all of your debt payments as they’re currently structured. However, if your creditors refuse to agree to a compromise, a bankruptcy might be in your best interest. When you file for bankruptcy, you halt harassing calls from your creditors and stop your wages from being garnished.

You may need to make monthly payments to defray the costs of the bankruptcy and, in many cases, make payments to be distributed to creditors, subject to your income. This is usually much less than your original debt. Talk to your Trustee for details specific to your situation.

When You Should Consider Bankruptcy

Filing for bankruptcy might be your best option, if:

  • You’ve been unemployed for an extended period of time without any savings or unemployment income
  • Your wages are being garnished
  • You have delinquent income taxes
  • You’re facing lawsuits for delinquent bills
  • Your home is nearing foreclosure
  • You’re not sure how much you owe exactly
  • You’re using credit cards to pay for necessities
  • You frequent pay day loans repeatedly

When You Should Consider a Consumer Proposal

Filing a consumer proposal might be your best option, if:

  • Your debts are over $5,000 but not over $250,000 (not including your home mortgage)
  • If you have a regular source of income and are able to make some monthly payments
  • If you’re unable to repay all of your debts on time
  • If you want to avoid the rigors regarding income and asset rules when filing bankruptcy

Still Unsure? Schedule a Free Consultation Today!

Now that you’ve been presented with some of the facts about bankruptcy vs. consumer proposals in Edmonton, the decision is up to you how you wish to proceed. If you’re still not sure which option is best for you, call our professional credit counsellors at A.C. Waring & Associates Inc. at 780-424-9944 or 1-800-463-3328 to schedule a free consultation today. We’d be more than happy to help in any way we can!