Cambridge, ON Consumer Proposal Services
Currently, Canada is facing a debt crisis. One report suggests that one in three Canadians expect to go bankrupt at some point in the future. This is concerning and there are certainly a number of causes to explore. For instance, it’s possible that the high divorce rate is contributing to issues here. A high divorce rate will mean that more people are being put under financial strain and suddenly facing their income being halved.
But what can you do when you realize that the level of debt you are in is impossible to pay off? Debt relief can be the answer and Consumer Proposals in Cambridge present one of the best possibilities. With the right level of debt relief, you can make sure that you are getting your finances back on to the right path as quickly as possible and recovering before it gets any worse.
What Is A Consumer Proposal?
Consumer Proposals in Cambridge are handled by Licensed Insolvency Trustees. While these are the same professionals that administer bankruptcies, it’s important to be aware that a Consumer Proposal is not the same process. For many people, a Consumer Proposal will be an attractive alternative to filing for bankruptcy.
With a Consumer Proposal, you are provided with a legal way that is backed by the government which can help you reduce the amount of debt you owe significantly. This makes it easier to pay off and will ensure that you can escape your debt more rapidly.
Working with your LIT, you will assess your budget, your earnings and your assets to determine how much of the debt you can afford to realistically pay off. The trustee will also determine how long it will take you to cover this debt and they will then present this plan to your creditors.
All your creditors will be notified and will be required to vote on the proposal. If the majority of creditors vote to approve the consumer proposal, then it passes. This means that you won’t have to worry about any issues with debt collection. In fact, debt collection stops as soon as you file Consumer Proposals in Cambridge. Of course, this is only one of the advantages that are worth considering.
Benefits Of Consumer Proposals
There are numerous benefits to seeking a Consumer Proposal that you might want to keep in mind. First, this will allow you to avoid bankruptcy. That means that you don’t have to worry about your assets being liquidated and sold off during this process to pay your creditors. Instead, you will be able to keep your assets as long as you can maintain your monthly payments. You can even keep your tax refunds.
It also includes all creditors of unsecured loans. This means that you don’t have to worry about loan companies continuously hounding you for the money that you owe. In fact, you won’t be dealing with them at all. Your monthly payment will go directly to the trustee who will ensure that your creditors get the amount that they are owed.
Furthermore, the majority of Consumer Proposals are successful and will be approved. A trustee will ensure that creditors have more to gain from accepting the proposed plan when compared to bankruptcy. A Consumer Proposal is also not as damaging to your credit as a bankruptcy. As such, you can recover far more easily even in a short period of time.
You can even decide to complete your proposal more rapidly. While the maximum amount of time is usually sixty months, Consumer Proposals in Cambridge are often completed far more rapidly. This is due to the fact that people find their financial situation improves gradually over time, allowing them to pay more earlier. There is no rule against doing this and it doesn’t mean that you’ll need to increase the amount you need to repay.
Are you interested in learning more about Consumer Proposals in Cambridge? Perhaps you are curious about the other debt-relief options available to you. At Bankruptcy Canada we can help. We have supported more than 100,000 Canadians seeking debt relief and we are confident we can help you too. Get in touch today or the phone or fill in our free evaluation form. The whole process takes just a few minutes and a friendly member of our team will get back to you as soon as possible.