Consumer Proposal Regina
Understanding Consumer Proposals in Regina
When you find yourself in a situation where debts are piling up, and you’re unable to repay them in full, considering a Consumer Proposal in Regina may be a life-changing solution.
What is a Consumer Proposal?
For Canadians struggling with unmanageable debt, a consumer proposal serves as a legal middle-ground solution between financial difficulty and bankruptcy. It’s a legal process under the Bankruptcy and Insolvency Act, allowing debtors to negotiate a payment plan with creditors to repay a part of what they owe.
How does it work?
A consumer proposal can only be arranged and administered by a Licensed Insolvency Trustee (LIT). The trustee prepares a proposal, outlining how you plan to pay back your creditors. This proposal is then sent to your creditors, and if the majority, by debt value, agree to the proposal, it becomes legally binding for all involved.
Note: The amount you repay is largely based on your income and assets.
Regina Consumer Proposal Office
Advantages of Filing a Consumer Proposal in Regina
Consumer proposals offer several benefits:
- Debt Reduction: It can significantly reduce the amount of debt you need to repay.
- Avoids Bankruptcy: It serves as one of the final ways of avoiding bankruptcy.
- Holds active collection of student loan payments.
Disadvantages of Filing a Consumer Proposal
While consumer proposals can provide relief, they come with certain drawbacks:
- Public Record: A proposal is a permanent public record included on a searchable database.
- Expensive: It’s more expensive than declaring bankruptcy.
- Risk of Rejection: Creditors can reject the Consumer Proposal – if they do, you may have to offer them additional funds otherwise your proposal will not proceed.
- Missed Payments: If you miss more than 2 payments you may need to file for bankruptcy.
Remember: Secured debts and student loans less than 7 years old are not included in a consumer proposal.
Beware of the Big Debt Rip-Off
Consumer Proposals have become a method for some for-profit companies to take advantage of vulnerable consumers. Many debt relief companies claim to offer Consumer Proposals as an easy way to get out of debt. However, only a licensed bankruptcy trustee is allowed to file paperwork for a Consumer Proposal.
Tip: Never pay money to anyone for Consumer Proposal services except a licensed bankruptcy trustee.
Safeguard Against Deception
To keep yourself from getting ripped off, follow these three tips:
- Consultation: Speak to an accredited, non-profit Credit Counsellor about your financial situation first.
- Payment: Never pay money to anyone for Consumer Proposal services except a licensed bankruptcy trustee.
- Compensation: Ask how the person helping you is compensated.
If you're unsure about the process or need help, contact a professional.
Impact on Credit Score
A special notation is placed on your credit report in the public records section once you enter into a Consumer Proposal. Moreover, your creditors may report a “7” rating on any debt included in the proposal, indicating that creditors are receiving your payments through a third party.
Contact Us for More Information
While a consumer proposal may be a good option for some, it isn’t the best option for everyone. To find out what options you have, contact one of our professionally certified Credit Counsellors today.
For more information or to speak with a Counsellor, contact us in Regina. You can also email or chat with us online right now.
Putting Your Interests First
Our goal is to always put consumers first and look out for their best interests in everything we do. We are held accountable to the most rigorous standards in our industry. Our dedication to providing trusted and independent financial assistance has helped improve the lives of thousands of Canadians seeking financial stability.
In the fight against debt, remember you’re not alone. Reach out to us today for a free consultation on Consumer Proposal in Regina.
Contact Us Today
We help Regina residents get out of debt with our government licensed consumer proposal services.
Benefit from the Personal Touch of a Licensed Consumer Proposal Expert in Regina
Bankruptcy Canada is a respected group of Licensed Insolvency Trustees who can offer expert advice and tailored debt relief solutions to individuals and businesses in Regina, regardless of their financial circumstances. We make diligent efforts to assist debtors in eliminating their debts and getting a fresh financial start. We can help lessen our clients’ debt burdens while upholding their dignity, stop wage garnishments, stop collection calls and stop all legal court actions against you.
A Consumer Proposal is your Chance for a Fresh Start in Regina.
Call for a free and confidential consultation at our Regina Office for immediate help with debt relief through a Consumer Proposal in Regina.