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Consumer Bankruptcy - Coggle Diagram

- - - - Maintain control of all assets including homes, vehicles, and furniture (necessary clothing, one motor vehicle $7,117, household furniture $14,180, Tools equipments used for trade $14,405, RRSP/RDSP made before 12 months before filing, Principle residence equity under $10,783)
    - - Less severe impact on consumer's credit
      - reduce stigma vs. bankruptcy which carries social stigma, as consumer proposal is viewed as a more responsible approach to debt repayments
    - - Stay of proceedings takes effect immediately and most wage garnishement will stop as will any lawsuits by creditors
- - - - Solution: income driven repayments plan, Refinancing and consolidating, Public service loan forgiveness
  - - - The current policy decision aimed at tackling inflation has resulted in an escalation of the debt burden on consumers