Guelph, ON Consumer Proposal Services

 

What Is a Consumer Proposal? Simply put this is an offer put forward to creditors who you owe money to. The aim of the Consumer Proposals in Guelph is to reduce the amount of debt that you need to pay back so that you can provide what creditors need without filing for bankruptcy. A key benefit of this solution is that it is legislated with the federal government. As such, you don’t have to worry about certain creditors not agreeing to participate. Once a Consumer Proposal is approved, it binds all creditors to follow the set regulations. 

Why Do You Need A Consumer Proposal?

 

A Consumer Proposal In Guelph will be worth exploring if you are dealing with a significant level of debt. Indeed, your debt may have reached the point where you can no longer afford to pay it off and might see no way of moving forward in the future. If that’s the case, then you might start to assume that bankruptcy is the only option available to you. However, this is not the case. The reality is that there are numerous other possibilities and a Consumer Proposal is one worth considering. 

 

When you start to realize that you can no longer handle your own debt, you might want to speak to a Licensed Insolvency Trustee. Experts on the market, these individuals will help you determine whether a Consumer Proposal in Guelph could be the right choice before you resort to bankruptcy. 

To do this, they will assess a number of key details including your earnings, assets and the level of debt that you currently owe. They might also explore how much of your debt is unsecured. It’s important to be aware that debt relief services like a Consumer Proposal will not impact secured debts like a car loan.

Once it is determined a Consumer Proposal is the right choice, your trustee will put together a plan. This will include details of how long it will take you to pay the money back and the amount that you can afford. This will be presented to all creditors who will either approve or reject the offer put on the table.

In the majority of cases, an offer like this will be approved. This is due to the fact that your trustee will make sure that creditors have more to gain from an offer like this compared with a bankruptcy. It’s also why Consumer Proposals in Guelph are typically successful. If the proposal is rejected, it will usually be a case of altering it slightly to be fairer. 

What Do You Need To Consider?

 

You need to make sure that you understand the cost of a Consumer Proposal. It’s important to note that the costs of Consumer Proposals in Guelph are accessible upfront. As such, there should be no surprises when you complete this process. It is also designed to be completely affordable for those who are dealing with significantly high levels of debt. 

You also need to think about whether you can afford the monthly payments. This is something that you should discuss with your trustee. Usually, your payments will easily fit into your budget with slight changes to your spending. Particularly, if you choose to pay off the amount over the full sixty months. It is however worth noting that there is always the option to increase your monthly payments and complete the proposal more rapidly. This is advised because it means that you can work to improve your credit as quickly as possible, rather than leaving it in a poor state.

You might find that your current income will not cover the cost of payments for a Consumer Proposal. If that’s the case, then bankruptcy may be the best option for you. Be aware that bankruptcy is different from a Consumer Proposal. With a proposal, you will be agreeing to pay off your debt. When you file for bankruptcy, as much debt as possible will be cleared by selling your assets. 

Are you interested in learning more about Consumer Proposals in Guelph? At Bankruptcy Canada, we can help. Our aim will always be to ensure that you have all the information that you need about this service as well as the other debt relief solutions available to you. Contact us today or fill out a quick evaluation form to begin this process.