|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)
||Monthly income and expense statements required.
|Tax refunds go to the debtor.
||Tax refunds for calendar year turned over to creditors.
||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.