Should I declare bankruptcy?

Should I declare bankruptcy?

Bankruptcy may seem like an easy solution. But if you are thinking about declaring bankruptcy, make sure you understand all of the consequences and make sure that it is worth it!

We have had clients who have arranged a consumer proposal for as little as $10,000-$13,000.

Did you know that the bank considers a consumer proposal as a bankruptcy?

Yes. So especially if you own your home and you have enough equity to pay out your creditors, it is almost always better to use the equity in your home rather than to do a consumer proposal.

Why do the bankruptcy trustees push consumer proposals?

In short – that’s how they get paid! When they arrange a consumer proposal, they make a commission.

So when should you declare bankruptcy? 

Only when absolutely necessary and there are no other options. And if you do, never under any circumstances include a mortgage in the bankruptcy. Why? Because you will never get a good mortgage again. Once bitten, twice shy!