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For most Canadian post-secondary students, borrowing money is unavoidable, in order to finance their education. The costs of tuition and textbooks – on top of living expenses like rent, groceries, and transportation – really add up. In fact, it is estimated that the average Canadian student graduates with almost $30,000 of debt. It’s a hard pill to swallow when you’re just starting your professional career.

If you are struggling with student debt, the team at Fuller Landau Debt Solutions can help you get back on track to fulfilling your personal financial goals. Below, we explore the differences between two options for debt relief: Consumer Proposal vs. Bankruptcy.

Is a Consumer Proposal or Bankruptcy Right for You?

Every individual has a unique financial situation, and while both Consumer Proposals and Bankruptcy can alleviate personal debt, there are key differences between them.

Definition of Consumer Proposal: A legally binding offer to pay creditors a portion of what is owed to them, or extend the time you have to pay off your debts, or both.

Definition of Bankruptcy: A legal process to eliminate debt for those who are struggling with financially hopeless situations.

Generally, a Consumer Proposal will be a better option compared to Bankruptcy for individuals looking to repay their student debts. However, student loans can only be considered for discharge after seven years from the end date of your education.

Here’s what you need to know:

Consumer Proposal Bankruptcy
Eligibility Only available to individuals who have debts not exceeding $250,000 (excluding your home mortgage). Available to individuals with no limit on the amount of debt.


Costs and Repayment Your Licensed Insolvency Trustee and creditors agree to a fixed monthly payment.


Varies as it is based on your income (the more you earn, the more you will need to repay).
Assets Will not lose any assets and are not required to surrender anything. Will be required to surrender certain assets, and exempt some assets such as household items.
Payment Period Can last up to 5 years.


First-time Bankruptcies can last from 9-21 months.
Early Release Can be paid down earlier than scheduled for early release, with no penalties and no interest. Early release is only possible in exceptional circumstances.

How to Tackle Your Debt

If you have been out of school for more than seven years and are still struggling with student loans and other debt, you don’t have to suffer in silence. The team at Fuller Landau Debt Solutions has helped thousands of Canadians resolve their debts problems, and can determine if a Consumer Proposal or Bankruptcy is right for you.  

It’s time to regain control of your personal finances, so you can lead a FULLER life. Contact us, today, to arrange a free consultation.

About Post Author

Tim Geary

Tim Geary leads the charge at Fuller Landau Debt Solutions. He joined the Fuller Landau consumer insolvency team after spending 25 years as a sole practitioner at the highly respected firm, Geary and Company, Ltd.Tim’s friendly and personalized approach to client service has earned him a consistent 5-star Google rating.