Compare the top two Ontario Debt Management Options

Who can claim

The only requirements are, your total debt cannot exceed a $250,000 (excluding a mortgage) and you must have the ability to repay a portion of your debts. However, you are not guaranteed to be granted a proposal just by filing one. It must be accepted by your creditors.

Any person, who owes more than $1,000 in debt, is eligible to file a personal bankruptcy in Canada. Ideal candidates are those who need rapid financial relief.

Costs

Once you and your creditors agree to a proposal amount, your monthly payment is fixed and it will remain the same until your proposal is completed.

Monthly payments vary as they are based on your income. The more you earn, the more you will be required to pay.

Assets

You will not lose any assets and you are not required to surrender anything.

In order to be absolved of your debts you are required to surrender certain assets.

Credit Rating

You will receive an R7 credit rating which indicates that you have made a settlement with your creditors. This is not a good credit rating, but it is better than a bankruptcy R9.

You will receive an R9 credit rating, which is the worst rating you can have. Depending on your circumstances, it will remain on your credit report for 7 to 14 years.

Monthly Reporting

You have no monthly tasks or reporting.

You are required to complete a monthly budget for all income and expenses, as well as supply copies of your pay stubs to your trustee.

Taxes

You are still entitled to all tax refund(s) and/or credits which you are owed.

You will lose all tax refund(s) and/or credits which you are owed.