Canada is a country of debtors.
So, if you face financial difficulties, you are not alone.
In fact, the year-on-year number of consumer insolvencies (bankruptcies and consumer proposals) had increased by 10.6% between January 2019 and 2020.
Meanwhile, there has been a noticeable shift towards consumer proposals over the past 5-to-10 years.
In fact, the change between Q4 of 2018 and 2019 was as high as 18.1%.
Frankly, it’s not hard to see why.
There have been thousands of success stories, and, with BankruptcyCanada, yours could be next.
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Consumer Proposals Are #1
Consumer proposals are now significantly ahead of bankruptcy filings, which dropped 0.4% between Q4 of 2018 and 2019.
In Q4 2019 alone, 21,627 people filed consumer proposals compared to 13,628 who entered bankruptcy.
Their popularity is attributed to many factors, including but not limited to:
- Credit Impacts – while bankruptcy appears on your credit history for seven years, consumer proposals only exist for two years.
Moreover, the negative impacts are far smaller, leaving the door open to better credit-building and borrowing opportunities.
- Asset Protection – unlike bankruptcy, consumer proposals allow you to hold onto key assets like multiple cars, investments, and your property.
This truly allows you to start a new chapter without taking several backwards steps.
- Convenience – when completing a consumer proposal, a licensed insolvency trustee handles the negotiations.
Moreover, all debts are consolidated into one easy and affordable monthly payment.
Once accepted, creditors can’t go back on the deal either.
Consumer proposals can be used in a range of circumstances too.
Whether, like Sam and Alice, unforeseen circumstances surfaced with an investment property, or your career has been harmed as a result of the Covid-19 pandemic, consumer proposals may be the key to finally regaining your peace of mind.
When To Seek Professional Financial Advice
If your gut instinct tells you that your financial situation is beyond your control, you’re probably right.
Therefore, it is best to speak to a licensed insolvency trustee, who can analyze your full financial situation and provide unbiased advice on which form of debt relief is right for you.
When visiting a trustee, you’ll come to realize a lot of things.
Key issues include:
- Filing for consumer proposals is a common route to take.
- There is no need to feel embarrassed or guilty about falling victim to unforeseen circumstances and rising living costs.
- It is possible to lead a financially responsible life following this process.
- Even when you stretch the repayment to five years, it is possible to repay the debts early if your financial situation improves.
Essentially, if your debts are growing by the month, or you’ve fallen into the trap of simply shifting debt around rather than actively reducing it, Bankruptcy Canada is here to help.
You could potentially cut your overall payments (principal and interest) by up to 70%, buy yourself more time, and lift a huge weight of stress from your shoulders.
The first step is to call (877) 879-4770 to arrange your consultation today.
The road to a brighter financial future starts here.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal