A financial advise told me I would be better off going Bankrupt than doing a Consumer Proposal because the Proposal in the end would take a lot longer and be more hassle than its worth. Does anyone have any experience with either or? Thank you
You have to consider what your real financial situation is. There are 2 types of consumer bankruptcies, Chapter 7 which discharges your unsecured debt, Chapter 13 which will allow you to pay pennies on the dollar over a 3 to 5 year period. The Chapter 7 will give you a fresh start and free up your cash. The Chapter 13 puts you into a systemactic program of repayment under the protection of the court. The proposal may free up cash if the creditors agree to reducing the debt, as well as, reducing the monthly payment. In any of the 3 scenarios your credit score will take a hit. With the Chapter 13 and the proposal you can't reestablish your credit until the programs are completed. With a Chapter 7 you can immediately start rehabilitating your credit when the Chapter 7 is offically close (approx. 4-6 months). You can do so with obtaining a secured credit card which is a card backed by a savings account you establish with the bank from $250-$1,000. Charge small amounts each month and payoff the balance systematically. Your credit can be reestablished in 18-24 months. Think it through and select the process that best fit your needs.
I know many people that are going through bankruptcy as we speak. Many people who have file already have been unable to get any financial help with banks regarding refinancing their homes, buying a new home, or receiving any kind of loans without a substantial down payment . It is hard for people to pay higher interest rates, if they go into debt again; bankruptcy is no longer an option; so I would say no. Don't file for bankruptcy unless it is your last option. Depending on how much time it would take before your proposal works; you will probably still have problems at the end and you would not be able to file again.
Bankruptcy is something that only people wishing to give up their financial independance, should want. A company called Asset Protector Group is offering a free webinar tomorrow night at 8:00 PM.
You can email me if you are wanting to find out more.
Hope this helps.
Rob