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Ottawa, Ontario
Tel: (613) 567-6434 |
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Home
> Bankruptcy Resources
> What is the difference between a consumer proposal and a debt management plan? |
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What is the difference between a consumer proposal and a debt management plan? |
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A debt management plan involves paying down the full amount of your debts with the help and management of a credit counsellor. You will consolidate all payments and make one monthly payment over a set time period. The debt management process is noted on your credit score for three years, just like with a consumer proposal.
Depending on the severity of your situation, a consumer proposal may be a better solution because:
- Your trustee negotiates a payment amount and schedule based on what you can realistically afford to handle.
- All collection actions, including wage garnishments, are legally halted by a consumer proposal.
- There is a better chance that the Canada Revenue Agency will allow your tax debt to be included in a consumer proposal than in a debt management plan.
- The results to your credit score are the same with either solution.
Ask your trustee about the option of a debt management plan during the first, free consultation.
IN THIS SECTION
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- Why did my trustee tell me to file all outstanding tax returns?
- I’m declaring bankruptcy because of taxes. Is this allowed?
- Will I still owe my student loan after bankruptcy?
- I can’t afford to pay back my student loan and it’s been less than seven years since I left school-what are my options?
- How long does bankruptcy last?
- Can I keep my car during bankruptcy?
- Can I keep my RRSP during bankruptcy?
- Can I keep my home if I declare bankruptcy?
- Will I still be able to rent an apartment or home if I declare bankruptcy?
- Can I keep a credit card during bankruptcy?
- Is it okay to use a credit card if I am thinking about bankruptcy?
- Can I get a checking account after bankruptcy?
- I co-signed on a loan for someone who declared bankruptcy. What happens now?
- If I’m married and I file for bankruptcy, does it affect my spouse’s credit?
- If my spouse declares bankruptcy and I am listed on their credit cards, am I responsible for the debt?
- I am divorced and my ex has declared bankruptcy. Do I still owe for debts and credit cards that I co-signed with my spouse?
- If I file for bankruptcy, will it be noted on my spouse’s credit file?
- Will filing for bankruptcy affect my job situation?
- Who will find out about my bankruptcy?
- Can I get utility services (telephone, cable, hydro, gas, etc.) after bankruptcy?
- Can I keep any money if I declare bankruptcy?
- What is surplus income?
- Can I go to jail for not paying my debts?
- The collection agency is threatening to take me to court: can they do that?
- What happens if a collection agency takes me to court?
- I am behind on my debt payments; can a collection agency take my furniture, electronics, clothes, etc.?
- I am being harassed by a collection agency: what can I do?
- Can I stop a wage garnishment?
- How do I find out if someone is bankrupt?
- What is Chapter 7 bankruptcy?
- What is Chapter 13 bankruptcy?
- What happens if I live in both Canada and the U.S. and declare bankruptcy?
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