Burlington, ON Consumer Proposal Services
Are you struggling with high levels of debt? Many people will often assume when they reach this point that bankruptcy is the only option. They will immediately think about starting fresh with a completely blank slate and might even assume that bankruptcy is a way to escape paying back what is owed. However, it’s important to be aware that this isn’t quite the case. First, bankruptcy does not provide the complete fresh start most people hope for. You will need to sell a lot of your assets to pay back as much as the money owed to creditors as possible. You will also severely damage your credit to the point where it can take seven years before you will be able to start rebuilding your finances with new credit paths.
There are also multiple alternative paths to debt relief before you start even thinking about bankruptcy. One of the best options will be a Consumer Proposal.
Consumer Proposals in Burlington provide residents with a way to handle their debt head-on. Instead of declaring bankruptcy, you will still be paying off a reduced level of debt. The rest of your debt will be wiped clean. As such, a Consumer Proposal can immediately provide financial relief.
How Does This Work?
A Consumer Proposal in Burlington is essentially an official legally binding offer to your creditors. You will calculate how much you can afford to pay back over a set period and every creditor will be given the chance to approve or reject the proposal. If the majority of creditors approve the plan, then the Consumer Proposal will pass. It’s worth noting that once the proposal has been approved, it is completely binding. This means that you don’t have to worry about some creditors refusing to participate. Furthermore, as soon as the proposal is filed all debt collection actions must stop immediately.
This means that you won’t have to worry about issues with wage garnishments or similar processes that are designed to reclaim the money you owe to creditors.
Do You Have To Handle This Yourself?
A Consumer Proposal in Burlington is managed and processed by a Licensed Insolvency Trustee. Your first step should always be to contact one of these professionals. They will discuss your options with you and make sure a Consumer Proposal is both possible and in your best interest. There will be cases where a different debt relief action might be more beneficial to you or where you won’t be able to afford a Consumer Proposal. If that’s the case, they will help you access the alternative options including bankruptcy.
If a Consumer Proposal is the right option your LIT will work out the sum you will need to pay back as well as the period for repayments. Usually, it’s recommended that people take a maximum period of 60 months to pay back the money they owe. However, it’s important to note that this doesn’t mean that you can’t pay back the money early. A Consumer Proposal will not prohibit you from increasing your payments each month. In fact, this is actively encouraged as it means that you can start rebuilding your credit more rapidly.
Often through the Consumer Proposal process, your financial situation will begin to improve. This means that you are going to be able to pay back the money owed quicker than you originally anticipated. If this does happen, you won’t need to pay off more debt so it makes sense to clear the amount as quickly as possible.
Alternatives To Consumer Proposals In Burlington
As mentioned, there are alternatives to Consumer Proposals in Burlington. Your LIT might discuss some of these with you when checking whether his is the right debt relief option. For instance, you can consider debt consolidation. The main benefit here is that you will reduce your interest but you will still be paying the same amount back. It’s also worth noting that with a Consumer Proposal there are no interest charges on the payments you complete each month.
Are you interested in learning more about Consumer Proposals in Burlington? If so, do make sure that you contact our team today or fill in an evaluation form online. With an evaluation form, you can provide key information in minutes and a friendly member of our debt relief team will get back to you as soon as possible.