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Consumer Proposals: How to Negotiate With Your Creditors and Avoid Bankruptcy
A consumer proposal in Canada is quickly becoming a popular alternative to bankruptcy. Consumer proposals allow you to negotiate with your creditors to repay only a portion of your debt. A consumer proposal is the most effective way to get out of debt and avoid bankruptcy.
Learn more about consumer proposals by following these links
What is a consumer proposal?
How does a Consumer Proposal Work?
Consumer Proposal vs. Bankruptcy
What is the Consumer Proposal Process?
Before you decide if filing for bankruptcy or a consumer proposal it is important to have an understanding of what debts the process of going bankrupt or making a consumer proposal will eliminate. Knowing what debts will be discharged when your bankruptcy or consumer proposal process is successfully finished is important to know. While bankruptcy … Read more
Consumer Debt Proposals in Canada With a Consumer Proposal You Keep all of Your Assets, Including your Home, Car and RRSPs Reduce Your Debt By 70% or More Stop Creditor Collection Attempts, Harassing Collection Calls and Wage Garnishments 400+ Offices Across Canada | 20 Years of Experience | 100,000 Satisfied Canadians Consumer Debt Proposal: Your … Read more
Unfortunately there are many myths about consumer proposals out there. These myths are posted online, on social media, or repeated on the radio. Despite the myths and misconceptions told about filing a consumer proposal, proposals have become a popular debt relief option for people struggling with debt problems. In this article, we will explore the … Read more
If you’re dealing with debts you cannot afford to pay, your creditor might process a wage garnishment to help recover the money directly from your wages. This can happen with little warning and will continue to happen until the debt is paid off. If, for whatever reason, your debts have become unmanageable and unaffordable, having … Read more
So, you’ve defaulted on a consumer proposal by not paying three months’ worth of payments, and now you’re terrified that debt collectors will begin hounding you for the unpaid debts you owe them, along with the compounded interest since the consumer proposal was initially filed. If that sounds like you, you do have options to … Read more
A consumer proposal can be an extremely reliable way to help you clear some of your debts. In fact, it can provide relief for up to 80% of all your debt and the remaining 20% can be paid off over several years. So here are ten common questions that we get asked about consumer proposals … Read more
Coping with an insolvency situation can be stressful, but when the process overlaps with family law issues such as a spousal claim, it’s important to understand how it interacts with things such as liability for equalization payments. So to help you out, we’ve put together this article that explains some of the concerns you should … Read more
Data suggests that around one in five people who file for bankruptcy or a consumer proposal are going through marital or relationship breakdown. Therefore, many want to know how these legal mechanisms deal with things like child and spousal support. Are Child And Spousal Support Discharged During Bankruptcy? Many people going through a separation or … Read more
Finding yourself in debt can be scary, and bankruptcy is often the first word that pops into people’s minds when they think of ways to get out of that debt. In 2018 alone, 128,846 insolvencies (including bankruptcies) were filed with the Office of the Superintendent of Bankruptcy (OSB). That number was up over 2% from … Read more
What does it mean when bankruptcy rates drop, while consumer proposal filings rise? When people find themselves in significant debt, one of the first steps people take it to max out their credit cards, which causes higher monthly payments in which individuals are paying on the interest, and rarely pay down much of the principal. … Read more
If you’ve recently gone through the process of establishing a consumer proposal via your Licensed Insolvency Trustee, you are likely in a much better financial position than you were previously. Whether the amount of debt you owe has decreased or the payment terms have been lengthened so you have more time to pay it back, … Read more
It’s important to know that student loans are similar to any other kind of unsecured debt. They can easily be removed in a consumer proposal but there are rules that apply. When you look at the 178 (1) (G) section of the Bankruptcy Act, you will soon see that the debts listed below are not … Read more
A consumer proposal is one of the best ways to settle severe levels of debt and improve your financial situation. In many cases, it can settle up to 80% of your unsecured debt and the remaining 20% can be paid off interest-free over the course of up to five years. However, a consumer proposal can … Read more
In 2019, just under three out of every 1,000 Canadians decided to file a consumer proposal. The government’s Office of the Superintendent of Bankruptcy also reported that consumer proposals were more prevalent than bankruptcies, making them a popular choice. When people look at filing a consumer proposal, one of the most common questions is whether … Read more
A brief introduction to consumer proposals Consumer proposals are legally binding agreements between a debtor and their creditors. The idea is to put forward a solution that is mutually beneficial for both parties. Consumer proposals are an attractive alternative for people who may be thinking about filing for bankruptcy because they enable you to keep … Read more
Why Going Bankrupt or Making a Proposal to Your Creditors is NOT an Admission of Failure! If you’re finding it difficult to keep up with bills and you’re behind with your rent or mortgage, you might feel as though you have failed. It can be incredibly distressing to reach a point where you get anxious … Read more
Millennials tend to wait longer to buy their first home. Therefore, it’s not uncommon for them to rent out properties for longer. However, Millennials who struggle with debt have other considerations. They don’t think about buying a home. Instead, they hope to be able to pay the rent at the end of the month. When … Read more
When they arrange for a first consultation, most of our clients don’t realize that Licensed Insolvency Trustees don’t just administer bankruptcies. Our expert trustees can help with a variety of debt management and relief solutions. One of those, the consumer proposal, is often misunderstood. A consumer proposal can provide an effective strategy to get rid … Read more
A consumer proposal can be an effective way to resolve debt problems but it’s important to understand how the process works. There are many elements to making a consumer proposal, so you’ll want to find out exactly what’s involved before you decide to take any action. When you’re considering whether or not a consumer proposal … Read more
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 … Read more
