Consumer Proposal Brampton, ON
Cut 70% Of Your Debt. Save Your Home and Car!
A consumer proposal in Brampton is a legally binding repayment deal between you and your creditors to repay a portion of the debt you owe.
A consumer proposal allows you to get out of debt while also avoiding bankruptcy and keeping all of your assets, including your home, car and investments.
Here's an example of how a consumer proposal works:
Joe and Jill Debtor owe $35,000 on their credit cards and an additional $15,000 on their line of credit and to a payday loan company.
While Joe and Jill both have good paying jobs, they don't have enough money to make all of their minimum payments after paying their mortgage and car loan bills.
They own their own home but they don't have a lot of equity so it's not possible for them to refinance their home.
Even though they don't have a lot of equity, they would still lose their home if they were to file for personal bankruptcy so they want to avoid bankruptcy at all costs, but still get out of debt.
They meet with a Licensed Insolvency Trustee (LIT) (also called a Consumer Proposal Administrator), who helps them work out that they can afford to pay $400 a month towards their consumer plan.
With the help of their consumer proposal administrator they send a proposal to their creditors to pay $400 over 60 months, and in return the total balance of their credit card, line of credit and payday loan debt will be legally written off.
The creditors vote to accept the proposal and Joe and Jill begin making 1 monthly payment to their licensed insolvency trustee acting as their consumer proposal administrator.
While they cannot write off their mortgage debt in a proposal, the consumer proposal allows them to afford to keep paying their mortgage as their unsecured debt payments are greatly reduced.
When Joe and Jill pay $400 a month for five years they only repay $24,000 on their $50,000 debt.
Why would their creditors accept this deal?
Because they don't want Joe and Jill to go bankrupt because the creditors would get even less if they were to file for bankruptcy.
Getting $24,000 is better than nothing.
So that's how a consumer proposal works.
A consumer proposal is a popular alternative to bankruptcy for people with a steady income and some assets they would like to protect.
To file a consumer proposal you must work with a Licensed Insolvency Trustee (also known as a Consumer Proposal Administrator throughout the process), as only a LIT is regulated by the Canadian government to provide consumer proposal services under the Bankruptcy and Insolvency Act.
If you don't have a high enough income you might have to consider personal bankruptcy.
To learn more about filing a consumer proposal you can meet with a licensed debt professional in your area.
We offer confidential and no obligation evaluation meetings with our friendly professionals so you can learn if a consumer proposal is viable for your personal financial situation and get answers to all your questions about how to get out of debt in Brampton.
Your initial 60 minute consultation is also free.
So please don't hesitate to contact us today.
We are friendly, respectful and caring of your needs.
Debt doesn't have to control your life any longer!
Our friendly Licensed debt relief professionals understand how difficult a time this is for you.
This is why we always put you first when you turn to us for assistance with consumer proposal services.
We always put you first and make sure you are taken care of in a caring and respectful manner.
Our Licensed Insolvency Trustees understand the value of meeting with a debt professional that puts you first.
We will always take the time to listen to your concerns and make sure you feel comfortable dealing with us.
Our team of friendly Licensed Insolvency Trustees are ready to give you their expert opinions when you are ready.
If you are dealing with debt and are struggling to manage your finances we know it can be difficult to know what to do next.
There are many solutions available to you and we understand it can be difficult to know how to proceed.
At Bankruptcy Canada we have friendly and experienced debt experts in your area who can meet with you to help you understand the right solution to your unique money problems.
With our caring assistance we can help you explore all of your debt options and help you choose the correct path towards getting out of debt.
To learn about the debt relief options provided by the Licensed Insolvency Trustees of BankruptcyCanada please request a confidential debt consultation through our online form or by calling 877-879-4770 today.
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.