Question: Is age taken into consideration when you make a consumer proposal. e.g. If you are 70 years old, stopping work due to downsizing and have very little in RRSPs and eventually just receiving OAS and CPP some part time work and minimum requirement from the RRSP’s
upon turning 71.
I would appreciate your comments bankruptcy over consumer proposal.
Answer: If you file bankruptcy in Ontario, you are required to pay a portion of your income above a certain limit. The amount of surplus income you are required to pay depends on the size of your family. If your income is primarily from OAS and CPP and some part time work, it is likely that your income will be below the limit, and therefore the cost of your bankruptcy will not be very high.
The most common reason for filing a consumer proposal is due to surplus income. If you have no surplus income, you may not be able to afford a consumer proposal, so bankruptcy may be a better option.
We suggest you contact a trustee for a free initial consultation to review your options in more detail; they can review your specific circumstances, and review your assets to help you decide whether a proposal, a bankruptcy or some other option is your best option.
Tags: cost of bankruptcy