Filing a Debt Proposal With Creditors in Alberta
If you want to try and look into a consumer proposal in Alberta then you have come to the right place.
Here you can find out whatever you need to know about Alberta consumer proposals and how it could be an option for you.
An Alberta consumer proposal is the best way for you to consolidate your debts.
It is a legal process between you and your creditors and when you take it out you will agree to pay part of what you happen to owe.
The amount that you will repay will be based upon your assets and your income.
A consumer proposal in Alberta is a very good way for you to lower the cost of your debt and it is an alternative to bankruptcy.
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How is it Set up?
A consumer proposal can only ever be set up by a consumer proposal administrator.
In addition to this, the trustee will keep 20% of your payments in the future.
This will be your consumer proposal administration fee.
If you want the proposal to be binding from a legal standpoint then the creditors who own most of the debt have to agree to the new arrangement.
If they agree, then you will have the legal obligation to pay back the debt over a maximum of 5 years.
Advantages of Consumer Proposal
There are so many advantages to taking out a consumer proposal.
One of them is that you can reduce the amount of debt that you have to pay back to your creditors.
A debt proposal in Alberta can be a very good solution if you cannot afford to pay back the debt that you owe and if you have a steady income.
On top of this, it is also a very good solution if you aren’t able to qualify for a consolidation loan or if you have high government debts.
Other bonuses include the fact that you will be able to put an active collection of your student loan payments on hold, giving you even more chance to get everything together.
A consumer proposal will remain on your credit report for several years, but it is not as damaging as a bankruptcy on your report.
All of your unsecured debts, such as credit cards, personal lines of credit, child and alimony arrears and income taxes owed can be included in a debt proposal plan.
Disadvantages of Consumer Proposal
Believe it or not, there really aren’t many disadvantages to taking out a consumer proposal.
Some of the few do include the fact that it will be on your credit record.
On top of this, it will be included on your searchable database.
It costs more when compared to filing for bankruptcy in some instances, but on the flip side, it’s nowhere near as damaging.
It is possible for the creditors to reject the proposal, but this is very rare.
Creditors are normally more than happy to work with you to try and reach a good solution for all parties, so you won’t have any problems there.
So as you can see, there are disadvantages but either way, every one is far less damaging when compared to filing for bankruptcy.
On top of this, you may also find that you are able to move on 3 years after you have finished your proposal.
Your credit rating will improve, and you will also be given the chance to have a completely fresh start.
Consumer proposals are very common in Alberta, and most of the time they are the ideal solution for those who are struggling with debt.
As a legally binding agreement between you and your creditors, the benefits of filing for a consumer proposal far outweigh the cons.
The monthly payments you make under your proposal agreement will be distributed amongst your creditors and the rest of the debt will be forgiven.
If you need some help finding out if a consumer proposal is the right thing for you to do, then it is a good idea for you to talk to a debt advice service, like Bankruptcy Canada.
Taking that Next Step
Here at Bankruptcy Canada, we pride ourselves on making sure that we always give a spectacular service and that we support you throughout every stage of your loan process.
If you want to find out more or if you are interested in finding out how we can help you with your consumer proposal, then please do contact us today.
When you do, we can then work with you to make sure that you are more than happy with the service you have been given while also helping you to know if there is anything that you can do to increase your chances of being accepted.
Contact us today to find out more.
You can contact us by phone or by email, at any time of the day.
We will reply to you as soon as we can.
If you are dealing with financial difficulty in Alberta, we can help you find the right solution.
The Office of the Superintendent of Bankruptcy regulates all consumer proposal administrators in Alberta.
Consumer Proposals in Alberta
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