Bankruptcy vs. Consumer Proposals
In bankruptcy, all non-exempt, unsecured assets are discharged at the end of the process. Your bankruptcy will appear on your credit score for 7 years, if this is your first bankruptcy.
A consumer proposal has a maximum dollar value allowed, up to $75,000 for an individual. Bankruptcy has no maximum limit. Consumer proposals only cover unsecured debts and you propose to pay only a certain portion of your debts back to your creditors. Your creditors each get a chance to approve or deny the proposal. Your payments must be discharged within 5 years, but the proposal only stays on your credit rating for 2 years.