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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?
How Much Does a Consumer Proposal Cost in Canada? Wondering what a consumer proposal will actually cost you each month? In Canada, the cost of a consumer proposal is based on what you can reasonably afford and what your creditors expect to receive—not on an hourly fee from your Licensed Insolvency Trustee (LIT). Trustee fees … Read more
What are the Main Advantages of a Debt Proposal? As the only government-sanctioned debt settlement program in Canada, consumer proposals have a lot going for them. While many once failed to consider this option, it’s a debt solution that’s fast rising to the fore, with 71,567 consumer proposals filed alongside just 54,893 personal bankruptcy claims … Read more
Consumer Proposals: Negotiating a Debt Settlement Plan With Your Creditors By the fourth quarter of 2019, Canadian debt rose to a combined total of around $769.4 billion. That equates to roughly $1.79 in credit market debt for every dollar of expendable income and is part of the reason that the Bank of Canada is getting … Read more
Consumer Proposal Case Story Debt can be a tricky thing to wrap our head around. Those of us who don’t relate well to figures and statistics may find it difficult to visualise the effects and consequences of their debt. Often we fall into bad habits or take on more debt than we can manage because … Read more
Joint Consumer Proposals The number of people filing for bankruptcy in Canada is declining because people are borrowing more sensibly and exploring their other options for debt relief. Debt settlement programs and debt consolidation loans can be good options, and a lot of people are turning to consumer proposals as well. The consumer proposal is … Read more
Consumer Proposals or Credit Counselling If you’re one of the two in every five Canadians that fears they will never be debt-free, debt relief could be the answer to your prayers, enabling you to clear your debts and start again in a financially responsible manner. However, if you are planning to seek debt relief, it’s … Read more
Should I Opt For a Consumer Proposal Or Debt Settlement? If you are faced with significant unsecured debts, it’s likely that both Consumer Proposals and Debt Settlement Companies will have surfaced during your initial research into potential debt relief solutions. At a glance, they promise very similar outcomes by settling your debts at a lower … Read more
Debt Consolidation vs. Consumer Proposal: What’s The Difference? If you are struggling with an insurmountable level of debt, you must look for a path to recovery. With various options available to you, it can be difficult to know which is the right choice. In this article, you’ll discover the key variables that you need to … Read more
Who Can Help Me File a Consumer Proposal? When you realize that your debts have spiralled out of control, chances are you want to do everything possible to retake the reins. In order to efficiently manage the situation, you want to act quickly; however, most people want to avoid bankruptcy. A favoured method of managing … Read more
Consumer Proposals & The CRA When it comes to consumer proposals, you probably know that you must file the proceedings with the OSB (Office of the Superintendent of Bankruptcy). From there, the material is forwarded to your creditors who get a total of 45 days to reject or accept the proposal itself. In order to … Read more
Consumer Proposal or a Debt Management Plan: Which is Better for Me? When it comes to debt, there are a couple of different approaches to handling it properly. Two proven methods include consumer proposals and debt management plans. While they do have a few similarities, they are different tactics meant for different situations. This breakdown … Read more
How to Rebuild Credit Following a Bankruptcy / Debt Proposal If you experienced some financial struggles, chances are you have less than optimal credit. Poor credit leads to a wide range of challenges – particularly in terms of getting a loan. Generally, a new creditor will check with the credit bureau and look into your … Read more
Using a Credit Card While in Bankruptcy or a Proposal A common inquiry posed by those either filing for bankruptcy or looking into consumer proposals is whether they can still have a credit card. Often, when looking to the future, consumers wish to keep the card they currently have – especially if it has a … Read more
Consumer Proposals & Sponsorship If you were born in a different country and are here on a sponsorship, a common concern is whether your status will be impacted by a consumer proposal. Another common worry is whether filing a consumer proposal can result in an adverse impact on the ability to provide sponsorship for others … Read more
What Happens After My Proposal is Over? Consumer proposals offer those in debt the opportunity to address the amount they owe to creditors under new terms. The completion of these proposals is represented by the last payment made per the arrangement. Proving Completion Once you issue this final payment, your financial representative administrating the proposal … Read more
Ensuring Your Consumer Proposal Is Complete & Gets Approved Financial difficulty is a huge stressor for many Canadians and filing a consumer proposal could be a consideration. It happens frequently right across the country, for all kinds of reasons — job loss, illness, divorce — just to name a few. If you’re bewildered by the … Read more
Understanding the Initial Consumer Proposal Assessment In your search for other alternatives to manage your financial situation – which doesn’t involve filing for bankruptcy – you have stumbled upon the option to file a consumer proposal. But, you still have questions, how does a consumer proposal work, what is an initial consumer proposal assessment, the … Read more
Length of an Average Consumer Proposal A consumer proposal is the first go-to alternative, before considering filing for bankruptcy, for people dealing with debt issues in Canada. This method allows people to give one last shot at repaying their debts using a revised timeframe, approved by creditors, and thus be debt-free and maintain a good … Read more
407 ETR Debts in Bankruptcy / Consumer Proposal The Background People with financial woes have two trains of thoughts in their minds usually. One – should they work on a formal Consumer Proposal or file for Bankruptcy? Two – even if they do choose either of these options, to what extent would they be granted … Read more
What Happens When RBC Votes No to a Proposal? Consumer proposals are one of the options for Canadians facing crippling debt to avoid bankruptcy or insolvency declarations. Rise in insolvency The number of insolvency filings are increasing in Canada fueled by large debt burden and higher interest rates. As per Canada’s Office of the Superintendent … Read more
