According to the Canadian Office of the Superintendent of Bankruptcy, personal bankruptcies decreased 19.1 % across Canada in 2011.

Personal bankruptcies in Canada decreased from a high of 145,233 in 2010 to 129,392 in 2011. But while bankruptcy levels have fallen, the number of consumer proposals filed has risen nationally by 10.7 percent.

Consumer proposals are court-approved debt repayment arrangements allowed for by a provision in Canada’s Bankruptcy and Insolvency Act. Consumer proposals are filed with the Canadian court system by licenced bankruptcy trustees.  If the creditors accept the proposal, it allows individuals to pay off their debts over a predetermined amount of time without filing for bankruptcy. A trustee can help determine if you qualify for a consumer proposal.

You can take a look to see which may be better for your situation by using our Debt Repayment Calculator or the Cost of Bankruptcy calculator. Or feel free to contact Welker and Associates for a free consultation.