Brampton, ON Consumer Proposal Services
Many people assume that once debt becomes insurmountable bankruptcy is inevitable. It’s not hard to understand why this is as a recent report has suggested that 1 in 3 Canadians fear ending up in bankruptcy. This is almost certainly due to the rising levels of debt in the country. However, it’s important to realize that there are alternative options for handling your debt before you resort to bankruptcy. Consumer Proposals in Brampton may be worth considering.
Consumer Proposals Explained
If you research online, you might find articles suggesting that Consumer Proposals are another form of bankruptcy and this is simply not the case. A key difference is that with bankruptcy you will need to liquidate a significant level of your assets with only a few exemptions. A Consumer Proposal doesn’t require you to do this at all. It is also not an admission that you are unable to pay all of your debts.
Instead, with a Consumer Proposal, you agree to pay the amount that you can afford. You can pay back the agreed amount over a period of up to sixty months. At the same time, a large percentage of the debt is wiped clean completely making it far easier to afford in both the long and short term. You won’t even need to worry about interest on payments.
How Does This Work?
Consumer Proposals in Brampton are administered by Licensed Insolvency Trustees. This debt relief solution is supported and regulated by the government. As such, you will be proceeding down official channels. Once you speak to your LIT, they will typically provide a free consultation. The aim here will be to determine how much of your debt you can afford to pay and how long it will take. Once it is assured that you will be able to handle the payments included in the proposal, it will be presented to all creditors who you owe money to. Each creditor will be given the opportunity to vote to approve or reject the offer. If the majority vote to approve it, then the proposal will pass.
It’s worth noting that any debt collection processes will cease as soon as a Consumer Proposal is filed. This means that you don’t have to worry about issues such as wage garnishments that could be putting additional pressure on your finances.
Once the Consumer Proposal in Brampton is approved by the courts, you will enter a legal agreement to pay off the debt within the set period. Assuming that you don’t fall behind on payments and that you do complete the Consumer Proposal on time, you will be debt-free at the end of the process. It’s worth noting that this does not include secured debts. If you have fallen behind on mortgage payments or car payments then you will still need to pay these off. They will not be impacted.
There are numerous benefits of Consumer Proposals in Brampton that you should consider. For instance, it’s possible that you can wipe away as much as 80% of the original debt. Usually, a Consumer Proposal will be approved as long as creditors stand to gain more from it than they do if you declared Bankruptcy. As well as this, you will also not need to worry about interest causing the debt to increase and you won’t even have to deal with your creditors anymore.
Instead, payments will go directly to your trustee and they will make sure that the creditors receive the money that they are owed. This keeps things easy and stress-free. You can even pay back the money you owe on a faster schedule. This means that you will be able to start improving your credit score more rapidly rather than waiting for the full sixty months. You might find that during the process of a Consumer Proposal your financial situation improves. If this does happen, you still won’t need to pay any more money back than previously agreed in the initial proposal.
If you are interested in learning more about Consumer Proposals in Brampton, please do make sure that you contact us today. We have helped more than 100,000 Canadians find the debt relief that they need and we are confident we can support you too. Call us or fill in a quick evaluation form online. A friendly member of our team will get back to you as quickly as possible, helping you break free from your debt.