Consumer Proposals: A Lifeline for Debt Reduction up to 80%
We’ve all heard the adage, “Life happens,” and it’s often used to explain unexpected situations that throw us off our planned course. Financial health is one such area that can be significantly impacted by life’s unforeseen curveballs. In such scenarios, consumer proposals can provide a lifeline, offering a way to reduce debt by up to 80%. This article explores the real-life story of Mike and Susan, who leveraged a consumer proposal to regain financial control.
Understanding Consumer Proposals
A consumer proposal is a legally binding agreement negotiated with your creditors through a Licensed Insolvency Trustee (LIT). This agreement includes a plan to pay back a portion of your unsecured debts over a specific period, significantly reducing the overall debt burden.
The Story of Mike and Susan
Mike and Susan, like many others, were living the dream of homeownership. However, health issues forced one of them to stop working, pushing them into a financial crisis.
“In the end, Susan and Mike needed to re-evaluate their financial goals when life threw them a curveball, and their consumer proposal helped them regain control of their finances so they could move forward carrying less of a burden.”
Their Journey Towards a Consumer Proposal
With mounting bills and a reduced income, Mike and Susan turned to a Bankruptcy Canada Licensed Insolvency Trustee (LIT) for help. The trustee was able to renegotiate their debt, reducing it from $115,000 to $41,000—a reduction of 64%.
Key Benefits of a Consumer Proposal
A consumer proposal offers several benefits:
- Drastic Debt Reduction: In Mike and Susan’s case, their debt was reduced by 64% through the consumer proposal. However, it’s possible to achieve reductions up to 80%.
- Interest Freeze: Once a consumer proposal is filed, all interests on your debts are frozen.
- Legal Protection: A consumer proposal offers legal protection against debt collectors.
The Aftermath: Regaining Financial Control
Post their consumer proposal, Mike and Susan were able to regain control over their finances. They re-evaluated their financial goals and embarked on a journey to financial recovery.
Conclusion
A consumer proposal can be a powerful tool for individuals struggling with unsecured debts. It provides a means to renegotiate your debts, potentially reducing them by up to 80%. If you find yourself in a similar situation to Mike and Susan, a consumer proposal could be your lifeline.
For more information about Consumer Proposals and how they can reduce debt up to 80%, click here.
NOTE: A consumer proposal should be considered as a last resort after exploring other debt management options. Always consult with a Licensed Insolvency Trustee or a financial advisor before making any decisions.
