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| Must be less than $250,000 in debt (excluding mortgage on personal residence) | No limit on the size of debt load |
| Available only to individuals | Available to individuals or companies |
| Settlement offer must be more generous than the creditors would receive in a bankruptcy. | Payments based on (a) household income and (b) value of realizable assets |
| 2 mandatory counselling sessions must be attended during the Consumer Proposal (the first within 60 days, the second within 210 days) | 2 mandatory counselling sessions must be attended during the Bankruptcy (the first within 60 days, the second within 210 days) |
| Not Applicable | Monthly income and expense statements required. |
| Tax refunds go to the debtor. | Tax refunds for calendar year turned over to creditors. |
| Not applicable | GST refunds turned over to creditors. |
| Proposal can be 1-5 years. Paying down the proposal earlier is recommended and welcomed. | Period of bankruptcy varies depending on first-time or multiple bankruptcies. |
| If three payments are missed then the Consumer Proposal is considered “annulled” , the protection is immediately lifted and the creditors have the legal right to pursue the amounts owing to them. | Bankruptcy payments are required to be completed in full before a discharge is issued by the Trustee |
| Paying down Proposal earlier is the ideal solution – no penalties, no interest and once completed the debtor’s credit rating can begin to improve. Credit rating rises to R1 three years following completion. | Bankruptcy payments can be paid down earlier but normally no early discharge as a result. Credit rating rises to R1 approximately six years following completion. |
