143 - Can You Switch Between Bankruptcy and Consumer Proposal

Under the Canadian Bankruptcy & Insolvency Act there are two options that allow consumers to eliminate debt, filing a Bankruptcy or a Consumer Proposal. The option you chose is based on your personal situation at the time of filing. But what happens if your financial circumstances change? Can you switch from a Bankruptcy to a Consumer Proposal or if you have filed a Consumer Proposal can you change to a Bankruptcy? When would it make sense to switch?

Licensed Insolvency Trustee, Francyne Myers walks us through these two debt relief options and explains when it may be beneficial to have your LIT make the change. She also discusses:

How an inheritance, sudden windfall or increase in your salary could affect your insolvencyThree options you have if you can’t keep up with your Consumer Proposal paymentsAdvantages and disadvantages of making changesHow your credit score will be affected when you make a switchWhy it’s important to work closely with your LIT to make the right choices

Licensed Insolvency Trustees are regulated by the federal government of Canada and are the only professionals who can administer a Consumer Proposal or Bankruptcy. With their extensive knowledge, you can be assured they will give you honest advice to help you make the best possible decision.

About Francyne Myers

In 2012, Francyne left her 23 year public service career and joined Allan Marshall & Associates where she completed her education and became a Licensed Insolvency Trustee in 2013. Alongside with her work she is actively involved in her local Trustee Association. In her spare time Francyne can be found fishing and spending time with her family.  

Additional Resources Allan Marshall & Associates Licensed Insolvency TrusteeUnderstanding the Top 5 Reasons for Declaring BankruptcyWhat Is the Consumer Protection Act?