One of the many things said to our Goldhar professionals when we first talk to people about their debt problems is “I don’t want to file a bankruptcy”. 

This is a very fair statement and we do as much as we can to make sure we discuss all the options that could be available to that person so that they do not need to file a bankruptcy.  Many of the people who contact us end up doing a consumer proposal and are very happy and satisfied with their decision.

But are there situations that it would be better to file bankruptcy? 

Here are some thoughts on the situation:

  • You are on a fixed income, but it is quite low, and you struggle to meet your monthly expenses, not including your debt repayments. Goldhar can tailor the bankruptcy payments to match your income and budget.
  • You have just become unemployed and new job prospects are not looking good. Filing a consumer proposal normally means a payment schedule lasting five years and only two months can be missed in that payment schedule – what happens when your EI runs out and your income is even more reduce?  Filing bankruptcy is less in total payments over all and often lasts on your credit in this type of situation for a shorter period than a consumer proposal.
  • You have enough income to make minimum payments to your creditors, but the amount owed to your creditors is so high that it will take many years to pay off the debt. In addition, the creditors to whom you owe money will want too high of a return for you to afford the monthly consumer proposal payments. Filing bankruptcy will allow you to relieve yourself of the debt in a time frame much more quickly than struggling to pay on your own or in a proposal.
  • This will be the first time you file a bankruptcy. Goldhar will explain why your situation might be better solved by filing for your first (and hopefully last) bankruptcy and all the required duties.


When you are facing financial difficulties knowing where to turn and where to find the facts can be confusing.  The best approach is to reach out to a professional – Goldhar & Associates Ltd., Licensed Insolvency Trustees should be your first step.  We will listen when you describe your situation and discuss the options that are available to you and how to choose the right solution.