A Consumer Proposal is a legally binding agreement arranged by a Licensed Insolvency Trustee that allows you to repay a portion of your unsecured debts over up to five years. Once filed, there is an immediate protection against your creditors, which stops wage garnishments, collection calls, interest and penalties. Once completed, the unsecured debt is legally eliminated.
A Consumer Proposal allows you to repay part of your debt through structured monthly payments while keeping your assets. Bankruptcy eliminates most unsecured debts but may require surrendering certain assets depending on provincial exemption laws.
Initial consultations with MORATAYA Corp. are confidential and free. During the consultation, a professional will review your financial situation and explain available debt relief options.
Most unsecured debts can be included, such as credit cards, bank loans, lines of credit, payday loans, tax debt, certain student loans and outstanding bills or accounts in collections.
You may qualify if you owe less than $250,000 (excluding mortgages on your principal residence) and are unable to repay your debts as they become due.
A Consumer Proposal can last up to 60 months (5 years), although many people pay it off earlier if their financial situation improves.
Yes. Once the proposal is filed, creditors must stop collection calls, lawsuits, and wage garnishments.
Yes. Interest on unsecured debts stops accumulating once the Consumer Proposal is filed.
You can keep your assets while making structured payments under a Consumer Proposal.
Yes. You may pay off your proposal early without penalties.
Personal Bankruptcy is a legal process that eliminates most unsecured debts for individuals who cannot repay what they owe. In Canada, it is administered by a Licensed Insolvency Trustee and provides legal protection from creditor actions such as wage garnishments and collection calls. It is designed to give individuals a fresh financial start when other debt solutions are not suitable.
A first bankruptcy typically lasts 9 months if surplus income does not apply, or 21 months if surplus income payments are required. A second bankruptcy typically lasts 24 months if there is no surplus income, or 36 months if surplus income payments are required.
Most unsecured debts such as credit cards, payday loans, bank loans, lines of credit, tax debts, some student loans, and personal loans may be eliminated.
Debts such as child support, court fines and speeding tickets, debts that arose from fraud, and certain student loans may not be discharged under Canadian law.
Yes. Filing bankruptcy provides legal protection from creditors and stops wage garnishments, with limited exceptions.
The cost of bankruptcy is regulated under federal law and is administered by a Licensed Insolvency Trustee. The total cost can vary depending on your income and assets. In most cases, payments are made monthly throughout the bankruptcy period, and the amount may increase if surplus income applies.
A Licensed Insolvency Trustee is a federally licensed and regulated professional authorized under the Bankruptcy and Insolvency Act to administer bankruptcies and Consumer Proposals in Canada.
Yes. In Canada, only a Licensed Insolvency Trustee can legally file a bankruptcy or Consumer Proposal.
If you are experiencing difficulty in keeping up with debt payments or are receiving collection calls, it would be helpful to speak with a Licensed Insolvency Trustee such as MORATAYA Corp.
The best option depends on your income, assets, and total debt. At MORATAYA Corp. we will review your situation, explain all available options, and help determine whether a bankruptcy, a Consumer Proposal, or another debt relief solution is the best fit for your circumstances.
In most cases your employer will not be notified unless wage garnishment arrangements were previously in place or if your employer is also a creditor.
Definitely. You can rebuild credit through secured credit cards, RRSP loans and responsible financial habits.
A first time bankruptcy typically remains on your credit report for six to seven years after discharge. A second time bankruptcy typically remains on your credit report for fourteen years after discharge. There are alternatives to filing bankruptcy which is why it’s important to meet with a Licensed Insolvency Trustee to review your debt relief options.
A Consumer Proposal generally remains on a credit report for three years after completion or six years after filing, whichever comes first.
The first step is to request a free and confidential consultation. At MORATAYA Corp. we will review your financial situation and explain your options.
