In short
- Bankruptcy involves handing over seizable assets to pay your debts while a consumer proposal is an agreement reached with your creditors.
- After declaring bankruptcy, you make monthly payments based on your income. Under a consumer proposal, you make fixed payments.
- A first bankruptcy lasts for nine or 21 months while a consumer proposal process can take up to five years. Bankruptcy remains on your credit report for a longer time.
- Bankruptcy is often perceived as a last resort. It allows you to start from zero.
Your personal situation will determine what the best option is for you.