Consumer Proposals in Calgary

Calgary has one of the highest records of consumer debt in the country, excluding mortgages on main residences.

However, millions of people across Canada are experiencing financial problems, so local residents certainly aren’t on their own.

In fact, an increasing number of people are struggling to manage their debts and keep up with repayments.

If you’re facing financial problems, it’s important to seek help.

Dealing with spiral debt can have a major impact on your emotional and physical health, so it’s vital to speak out and access support.

In addition to this, you’ll want to obtain advice from trusted sources.

With plenty of debt solutions available, you simply need to find the one that’s right for you.

Should You File a Consumer Proposal in Calgary?

Before you can decide whether or not to file a consumer proposal, you’ll need to know exactly how they work and what the consequences are.

Despite being an effective way to deal with debt problems, few people are familiar with consumer proposals before they seek third party help with their finances.

Once you realise just how helpful consumer proposals in Calgary can be, however, you may be eager to get the ball rolling.

Suitable for individuals with less than $250,000 total debts (or spouses with less than $500,000 debt between them), excluding a mortgage on your home, consumer proposals can be a simple way of reduce the amount you need to pay back.

As part of the consumer proposal process, a Licensed Insolvency Trustee will work with you to determine exactly what your income is, what your financial obligations are and how much of your debts you can afford to repay.

This gives your Licensed Insolvency Trustee the information they need to start formulating a proposal.

Once complete, it can be submitted to the court and presented to your creditors.

You’ll need creditors that are owed the majority of the total outstanding sum to accept your proposal before it becomes binding on other creditors too.

If you think you’re eligible to make a consumer proposal in Calgary or the surrounding areas, you’ll want to know what benefits it offers.

Understanding the Benefits of Consumer Proposals

It doesn’t take long for debt to spiral out of control, particularly if your creditors apply high interest rates to your accounts and implement costly charges at regular intervals.

When you file a consumer proposal, however, the total amount outstanding can be significantly reduced.

While you will still need to pay back a portion of what’s owed, you could cut your liabilities by up to around 70%.

In addition to this, filing a consumer proposal will mean that collections activity ceases.

As creditors won’t be able to contact you repeatedly or take action against you, filing consumer proposals in Calgary can also give you great peace of mind and a new sense of freedom and ease.

Although bankruptcies and consumer proposals are both forms of insolvency, consumer proposals are generally accepted to have fewer downsides that bankruptcy.

For example, if your capital increases before your bankruptcy is discharged, you may be required to pay more to your creditors via the court.

With a consumer proposal, however, there’s no need to recalculate your payments based on an income surplus.

In addition to this, a consumer proposal won’t affect your professional standing.

When you file for bankruptcy, you are prevented from acting as a company director.

Depending on your current position or professional aims, this could have a major impact on your life, career and earnings.

If you’re eager to avoid this restriction, a consumer proposal could definitely be a more preferable way to deal with your current financial problems.

Filing Consumer Proposals in Calgary

Talking to a Licensed Insolvency Trustee is always the first place to start when it comes to filing a consumer proposal.

Luckily, a Licensed Insolvency Trustee can also provide you with information regarding other forms of debt resolution.

By discussing your situation in detail with a trained professional, you can determine whether a consumer proposal is the best way forward for you.

To speak to a Licensed Insolvency Trustee today, contact Bankruptcy Canada now.

We’ve been helping people to escape debt problems since 1999 and we can help you too.

We’re available 24 hours a day, 7 days a week, so you can get in touch with us at a time that’s convenient for you.

Our personal insolvency experts can help you examine your financial situation and explore the right debt relief options for your situation.

Consumers dealing with a financial difficulty can turn to us for help becoming debt free.

A consumer proposal allows you to settle unsecured debts and make a payment plan of set monthly payments or a 1 time lump sum payment to clear your outstanding debts.

Our Calgary, Alberta office is staffed with outgoing, respectful and caring professionals who are experts in insolvency and restructuring.