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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?
Should I File a Consumer Proposal? If you are one of the growing number of Canadians currently struggling to make ends meet or satisfy debt repayment agreements, it’s vital that you take control of the situation ASAP. When researching debt relief strategies that allow you to escape the threat of bankruptcy, the concept of a … Read more
Consumer Proposal & My Credit Rating Drowning in unsecured debt can feel like a nightmare. Every payment you try to make is made on interest, rather than the principal debt, and with every step you take, it feels like you’re being forced back two steps. If you’re completely exhausted your debt repayment options after speaking … Read more
How a Consumer Proposal Improved My Life Money worries can impact every aspect of life, making every day a struggle. The good news is that there are ways to get out of debt. This article documents how filing a consumer proposal changed my life. Need Help Reviewing Your Financial Situation? Contact a Licensed Trustee for … Read more
If you’re looking for debt relief solutions, it’s important to consider all the options that are available to you. By finding out more about consumer proposals, you’ll be able to determine whether it’s the right form of debt resolution for you and, if so, how to go about making one. In simple terms, a consumer … Read more
House and Mortgage Debt in a Consumer Proposal If you are having trouble paying your debts when they are due, then a consumer proposal may be a good option for you. When you take out a consumer proposal, you will make an offer to all of your unsecured creditors and you will pay your debt … Read more
Can an Insurance Broker in Ontario Go Bankrupt or Make a Consumer Proposal? In a situation where you are brokering insolvency insurance in the province of Ontario, there is some good news in terms of bankruptcy and consumer proposals. Generally speaking, filing for these financial statuses will not preclude you from practicing nor will it … Read more
Is There Life After a Consumer Proposal? The end goal of entering into a consumer proposal contract is to pay off what you owe and earn your Certificate of Full Performance. This is a piece of documentation that will be authorised by your proposal trustee and will demonstrate that you have completed the full consumer … Read more
Unfreeze Bank Accounts With a Consumer Proposal or Bankruptcy As the cost of living in Canada rises, our wages can often be slow to catch up with the rate of inflation. It can feel as though, no matter how hard we try to manage our finances, we’re taking one step forward and two steps back … Read more
Protecting Yourself From Your Creditors With a Proposal or Debt Management Plan Although we’d all like to lead a life that’s free of debt, for many of us it becomes unavoidable. Interest rates are low. Access to cheap credit is easy. As such, we can often lean on lines of credit to pay unforeseen expenses … Read more
Consumer Proposals Are Voted on by Creditors A consumer proposal is a good alternative to bankruptcy that allows you to pay off a portion of your debt and have the rest written off. In order to do this, you must submit a proposed amount to your creditors, which must exceed the amount that they would … Read more
A consumer proposal is an effective debt relief option that allows you to avoid bankruptcy and pay off a portion of your debt over an extended period. However, it will have a negative impact on your credit rating, which can make things difficult in future. Many people that enter into an agreement of this kind … Read more
Why You Shouldn’t Miss Payments in Your Bankruptcy or Consumer Proposal Household debts can easily spiral out of control. As interest rates rise and we need to take on more debts to help us stay afloat while paying off our existing debts, Canadian households can find themselves insolvent. Fortunately, if they are no longer to … Read more
Cosigned Debt in a Consumer Proposal Falling behind on loan payments is never something taken lightly, but at times, it may be necessary to establish a consumer proposal to allow you to make adjusted payments and continue owning the asset, such as a house or car. If possible, you may want to consider establishing a … Read more
Debt Level Eligibility – Requirements For A Consumer Proposal A consumer proposal can be a less drastic option than bankruptcy, but you do have to be eligible to make this agreement with your creditor. As stated in Section 2 of the Bankruptcy and Insolvency Act, you first need to be considered as an ‘insolvent person.’ … Read more
How Much Do I Have to Offer My Creditors in a Consumer Proposal? When weighing up the various debt relief solutions before you, a consumer proposal might be the logical choice. Provided you don’t have debts in excess of $25,000, one of our licensed trustees will help you come up with a settlement figure that … Read more
How to Calculate Payments in a Consumer Proposal The consumer proposal drawn up to meet the demands of your creditors will be unique to you, and payments will be calculated after factoring in your income, assets, and the size of your debts. Typically, you will be asked to settle your debts for around 30-40% on … Read more
Impact of a Consumer Proposal on Credit A consumer proposal is a popular debt relief option, giving you the opportunity to climb out from underneath whatever sum of money you might owe. While many people try to compare a consumer proposal and bankruptcy, the two are very different. Need Help Reviewing Your Financial Situation? Contact … Read more
Avoiding a Consumer Proposal Annulment A consumer proposal can be an excellent way of managing your finances and reducing your debts. When your consumer proposal is accepted, your debts can be reduced by up to 75% and creditors can be stopped from any subsequent interest to your accounts. Offering many of the benefits associated with … Read more
When it comes to resolving debt problems, one of the most popular options is to opt for a Consumer Proposal. It’s a legally-binding process that gets administered by a Licensed Insolvency Trustee, also known as a “LIT.” Of course, it’s not a process that should be chosen to resolve your debt problems without first getting … Read more
Most people who get in touch with our Licensed Insolvency Trustees believe that debt settlement and consumer proposal are interchangeable terms. In reality, a consumer proposal is one type of financial plan that can settle your debt. It is a legally binding document that provides debt relief to an individual. However, not all programs that … Read more
