2. Decide if a consumer proposal is your best option

A might be a good option to help you get out of debt if you:

  • are not able to pay back the whole amount you owe
  • have a house, car, or other things that you do not want to lose in
  • are able to make smaller payments on your debt to help reduce what you owe

But there are some disadvantages. Your will go down and your will have a note about your consumer proposal for 3 years after you finish paying the consumer proposal.

Sometimes the effects of a consumer proposal can last longer than those of a bankruptcy. For example, information about a bankruptcy will come off your report 6 to 7 years after you are discharged. If you take 5 years to pay off your consumer proposal, a note about it will be on your credit report for a total of 8 years.

You might have other options. For example, you could:

  • talk to your creditors
  • apply for a
  • file for bankruptcy
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