Spotting The Differences Between Consumer Proposal And Bankruptcy

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Spotting The Differences Between Consumer
Proposal And Bankruptcy
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If you are wondering what way to choose to put an
end to your debts, there are two major insolvency
solutions from which to choose.Lets take a look
on the Differences Between Consumer Proposal And
Bankruptcy
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Filing with LIT or Licensed Insolvency
Trustee
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First Thing
When comparing the differences between consumer
proposal and bankruptcy, the first thing you need
to understand is that both have to be filed by
Licensed Insolvency Trustee or LIT.However, if
your debt situation favors bankruptcy, the best
option is to consult with a bankruptcy law lawyer
to know if it is the right way to resolve the
debts depending on your case.
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Consumer proposal is a better option
When your debts are more than you can settle or
handle, you might wonder whether to file a
consumer proposal or bankruptcy. While the
situation of every debtor differs, the following
points highlight why consumer proposal is a
better option than bankruptcy.
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Role of a trustee in consumer proposal
If you lack the ability to afford credit
counseling or obtain a debt consolidation loan,
these alternatives can be used to pay to the
creditors without getting into the burden of
additional cost and the only options that are
going to stay are consumer proposal or
bankruptcy, and prevent the chance of being sued.
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Flexibility in consumer proposal
With the system of a consumer proposal, you will
experience flexibility in making the payment. A
majority of the amount of consumer proposal is to
be carried out through monthly payments to the
trustee who is going to distribute the funds
among the creditors.
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Choosing the option of bankruptcy If you want to
get relief from the pressure of debts, bankruptcy
is an ideal option although it differs from
consumer proposal in many ways. When it comes to
the role of trustee in dealing with bankruptcy
and insolvency act, you must know the
following. 1. The trustee can oversee your
income. 2.They are going to
file the income tax return in the year of filing
bankruptcy.
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Conclusion
Bankruptcy is one of the most viable options for
those debtors who are unfortunate and are unable
to repay their debts. For resolving the debts
issues properly, the first step you need to take
is to hire a professional and explore the options
that are available and determine the best
move. Resource https//www.doffitt.com/spotting-
differences-consumer-proposal-bankruptcy/
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Contact Info
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Delhi 110024, India.
Email address
admin_at_ahlawatasscociates.in
Phone
91 11 23384517 Website www.ahlawatassociates.com