Consumer Proposal Woodstock, ON

A consumer proposal is a debt relief solution that allows you to settle your debt for less than you owe by proposing a debt repayment deal with your unsecured creditors.

A consumer proposal has many benefits and it is often better for your creditors as well.

By filing a consumer proposal you can consolidate all of your debts into 1 monthly payment and you will avoid all interest charges while you are making your consumer proposal payments.

A consumer proposal can last for up to 60 months, but it can last for as little as 1 month as well.

One of the benefits of a consumer proposal is you have the flexibility to repay a portion of what you owe over a period of time that works for your budget.

A consumer proposal allows you to reduce and pay off your debt, while also avoiding filing personal bankruptcy.

Consumer proposals are the most popular alternative to bankruptcy in Canada and there are many reasons for that.

The benefits of a consumer proposal are numerous including:

• You often pay less than you owe in an interest-free repayment plan with your unsecured creditors,
• You can keep all of your assets whether is is your home, car, boat or investments that would otherwise be lost in bankruptcy,
• You can stop all creditor collection actions such as wage garnishments, harassing collection calls and frozen bank accounts,
• You can have a sense of accomplishment because you are repaying as much as you can, while still getting out of debt without interest payments.

When you file a consumer proposal you are entering a legal process to repay a portion of your total debts without paying interest charges or any additional fees to your consumer proposal administrator.

Your proposal administrator will be paid out of the monies you pay to your creditors.

So if your consumer proposal calls for a payment of $300 a month for 36 months this is all you will be paying, as your proposal administrator's fees are paid out of the $300 payment you make.

Generally, your proposal administrator takes the first $1,500 in payments that would go to your creditors and then a further 20% of each additional payment to cover their fees.

Consumer proposals have steadily grown in popularity over the years as more and more Canadians realize the benefits over bankruptcy and other debt relief solutions available to Canadians.

A consumer proposal is a popular debt relief option for people that owe less than $250,000 of unsecured debts (not including the mortgage debt on your principal residence), or $500,000 if a married couple is making a joint consumer proposal.

If you have debts over $250,000 (or $500,000 if you are filing a joint proposal) you can still file a proposal, although there are different rules.

You can speak to a Licensed Insolvency Trustee in your local area to learn more about consumer proposals.

We offer no-pressure, no obligation and free debt relief consultations so you can learn about all of your options to get out of debt.