As a bankruptcy Trustee in Windsor, that is a frequent question I am asked. That depends on your situation and each situation is different.

These are the things I look at. There are other factors, but these give me a starting point.

1. What is your net income and monthly household expenses? The more money you have left over, the greater the likelihood a consumer proposal makes sense.

2. How much money do you owe and to which companies?

3. What is your monthly net income? The higher the net income, the more expensive bankruptcy will be.

4. What are your assets? The more you have in assets, the more expensive bankruptcy might be.

For example, consider Joe (a made up situation).

Joe is single, takes home $1,300 biweekly and owes $22,000 on credit card debt. If Joe were to file for bankruptcy it would cost him approximately $9471 (this assumes the same pay rate). Joe has the opportunity to work overtime which would result in even higher bankruptcy payments. If he were to file a consumer proposal, he may be able to offer $250 a month for 40 months. Both would cost about the same, but Joe would have a lower monthly payment with a consumer proposal. In this case, Joe would choose the consumer proposal.

If you are experience financial difficulty it’s important to talk to someone about your options. You can call me at 310-PLAN , email me or complete an online evaluation.