Q: What is the difference between OCCA and Bankruptcy or a Consumer Proposal?
A: A trustee can only offer you one of two options, bankruptcy or a formal consumer proposal.
Bankruptcy: Which can destroy your credit rating, and make it extremely difficult to get it back to what it was. By claiming bankruptcy many road blocks and hurdles are created. Depending on how many times it has been legally declared, a bankruptcy will remain on your credit rating or score for a minimum of 6 years up to 14 years. Through a bankruptcy you cannot obtain credit again for 6 or 7 years.
Formal Consumer Proposal: Has no flexibility on what you want to pay, you can neither prioritize, nor exclude, any creditors. And, if you miss any payments with a Formal Consumer Proposal, the proposal then becomes null and void.
OCCA offers an Informal Consumer Proposal, which allows us the flexibility to tailor our program to suit your specific needs. We can include or exclude any creditors you choose. Once you join our program, if your situation either improves or worsens, we will contact your creditors to make modified arrangements, based on your change in circumstances.