Consumer Proposals: Bankruptcy Canada Can Help You
A Consumer Proposal is Only One of the Debt Relief Services We Offer
If you are dealing with debt, but you don't want to file for bankruptcy because you will lose certain assets, a consumer proposal could be the alternative to bankruptcy that you are looking for to get out of debt.
If you are wondering what a consumer proposal is, we can help you understand the process.
Basically, a consumer proposal is a legal agreement between you and your creditors that makes a plan for you to get out of debt by repaying a part of the debt you owe over a set period of time.
Some of the benefits over personal bankruptcy that a consumer proposal offers is you can keep your home and car, regardless of the equity you have.
A consumer proposal allows you to make regular monthly payments at a reduced rate on your unsecured debts so you can keep the assets you would like to keep.
The amount you will repay in a consumer proposal is based on your income and what you owe, but often you will be able to reduce your debt payments to 30% of what you originally owed.
Another benefit of a consumer proposal is that there is no interest charges throughout the consumer proposal debt repayment plan.
To get more answers you can schedule a free confidential evaluation by filling out our online consultation request form or calling your local office.
We Offer Friendly Advice and Guidance
When you are faced with an overwhelming debt problem, understanding your debt relief options can be confusing.
You don't have to worry, because our Licensed Insolvency Trustees are here to help you get out of debt.
We take the time to understand your concerns and the source of your debt problems so we can provide the right solution for you.
We will carefully review your situation to determine if a consumer proposal can help you get out of debt.
If a consumer proposal is the right way forward for your situation, we will help you make up a consumer proposal that will work for your budget and will be attractive to your creditors.
Consumer proposals can help you ease your debt worries and move on to a fresh financial start.
Here’s how the consumer proposal process works:
When you meet with a Licensed Insolvency Trustee (who will become your consumer proposal administrator) you can review your options to determine if a consumer proposal is the right debt relief solution for you to get out of debt.
If we determine that a proposal is the right solution for you, we will help you understand the process and what is involved with the consumer proposal process.
Your Licensed Insolvency Trustee will work with you to determine how much you can afford to pay to your creditors through a consumer proposal.
You won't pay any interest charges during your consumer proposal.
When you file your consumer proposal with your creditors, collection actions will stop, such as rude collection calls, legal actions and wage garnishments.
When your consumer proposal is accepted (almost all consumer proposals filed by our Trustees are accepted) you will begin following the terms of the proposal.
This includes making the required monthly payments, or lump sum payment, as agreed to in your proposal plan and completing two financial counselling sessions.
After you have successfully completed the proposal your debts that were included in your proposal will be legally discharged.
Once you have competed your consumer proposal, the Trustee will help you plan for your debt-free future.
Your Licensed Insolvency Trustee will help you plan on how to rebuild your credit score, and will give you tips and advice for staying clear of debt in the future.
Consumer Proposals Offer a Flexible Solution
Consumer proposals give you flexibility in working out a way to get out of debt that works for both you and your creditors.
Under a consumer proposal plan you can work out payments over several years, or you can make a lump sum payment if you have assets to cash in, or can borrow money from friends or family.
A consumer proposal also allows you to pay extra money into your proposal at anytime if your situation improves, so you can pay off your proposal faster.
To learn more about a consumer proposal, and the benefits it offers, please get in touch with Bankruptcy Canada today to schedule your free, no-pressure confidential consultation meeting.
Consumer Proposal Services in Canada
All of the Licensed Insolvency Trustees of Bankruptcy Canada are members of CAIRP (Canadian Association of Insolvency and Restrucuring Professionals).
CAIRP is the governing body that advocates for the insolvency (bankruptcy and consumer proposal) process in Canada.