Why is it a good idea to consider making a consumer proposal if you have previously filed personal bankruptcy?

Filing a consumer proposal is not bankruptcy. Therefore by filing a consumer proposal, someone that has been bankrupt previously can avoid a second personal bankruptcy filing. This is important because the personal bankruptcy process for a second time bankrupt is a much longer process, in some cases up to 36 months, and the bad credit rating that results stays on the credit bureau report for 14 years after the discharge. This means that filing a second time could affect someone’s credit rating for up to 17 years from the date of filing. Whereas filing a consumer proposal affects the credit rating for 3 years after the proposal is paid in full.

If you’ve already filed bankruptcy, but years later find yourself struggling with debt again, call us to set up a free consultation. We will review all of your options and help you get a fresh start.

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