A lot: you are not alone
In Canada in 2014 more than 53,000 people filed a consumer proposal. The number of consumer proposals has increased each and every year since they were introduced, even when bankruptcies were declining.
Why are the number of consumer proposals increasing?
Clearly, Canadians are choosing to file consumer proposals as an alternative to bankruptcy.
One reason for this change is that bankruptcy rules were changed in 2009 to make filing bankruptcy in Canada more costly for some people.
For example, if you file bankruptcy and your income is higher than the limit set by the government, you are required to pay a surplus income penalty in bankruptcy.
So, by filing a consumer proposal, your monthly payment may be lower, and you know exactly what you are required to pay, which accounts in part for the increase in consumer proposal filings in Canada.
Please see our article on the advantages of filing a consumer proposal for more information.