Consumer proposals and bankruptcy both will get you out of debt, but there are differences between the two.
The primary difference between a consumer proposal vs. personal bankruptcy lies in the impact on the things you own, the affect on your credit score, and your responsibilities through each process.
A consumer proposal vs bankruptcy enables you to retain more of your assets, whereas bankruptcy often requires you to surrender certain possessions and even make extra payments.
Additionally, a consumer proposal vs bankruptcy has a less effect on your credit score compared to a bankruptcy.
Another significant distinction is the duration these actions remain on your financial record. A consumer proposal stays on your record for three years, while a first-time bankruptcy remains for six years.