Consumer Proposals in Hamilton
Are you struggling with debt in Hamilton, Ontario?
In the province, the level of debt is ever-rising, leading to residents seeking methods to help eliminate the debt that they owe.
Luckily, no matter where you live in Hamilton or the financial situation that you’re in, there’s a debt relief solution that’s suitable for you.
These services include:
- Filing for bankruptcy
- Debt consolidation
- Debt settlement
- Credit counselling
- Consumer proposals
And while personal bankruptcy might be the first choice you turn to, it doesn’t have to be.
Consumer proposals in Hamilton are ever-growing in popularity due to the advantages that they have over filing for bankruptcy.
But for those who are unsure about what the steps are, the process might feel a little daunting.
This is where an Ontario-based Licensed Insolvency Trustee (LIT) comes in.
With years of experience in the industry, the Licensed trustees that Bankruptcy Canada is partnered with know how to help you to achieve financial freedom as soon as possible.
Find out more by contacting one of our Licensed Insolvency Trustees today by either calling on (877) 879-4770 or by email.
What are Consumer Proposals?
To put it simply, a consumer proposal is a legally binding process that’s suitable for individuals in Canada with debts below $250,000 (excluding mortgage debt).
A method of making a settlement with creditors, it’s an alternative to bankruptcy that can be very effective.
The proposal, also known as a repayment plan that’s put forward to creditors, will detail the exact amount that you will repay back to your creditors.
Usually a percentage of what you owe or with an extension added to it, it will give you flexibility.
Each of the payments is made directly through your trustee.
So what are the key benefits of consumer proposals in Hamilton?
There are numerous benefits that come with filing for a consumer proposal in Hamilton, including, but not limited to the following:
- Keeping all of your assets (unlike filing for bankruptcy).
- Stopping any wage garnishment.
- Allows you to avoid filing for bankruptcy.
- Stops collection calls from creditors.
- Consolidates your monthly repayments into one affordable payment with no interest.
- Deals with any harassment from payday loans.
- Writes-off a large portion of your debts (up to 80%).
Working with you from start to finish, your trustee will craft a personalized repayment plan that you can afford each month.
Once your repayments are then complete and your creditors are satisfied that you’ve successfully carried out your duties, your debts will be eliminated.
It’s essential to keep in mind that if you’re a homeowner with a mortgage, it will not affect it.
Similarly to if you have a secured car loan.
Consumer proposals – what are the steps?
So what are the steps that you have to take?
Even though the trustee will take you through these at the start of the process, it’s important that you’re prepared in advance for the process.
Firstly, if you’re struggling with debt it’s important that you contact a trustee to discuss your situation.
Then, in your initial consultation, the trustee will review your situation and will talk you through your options.
If it’s decided that a consumer proposal is right for you, you’ll sign documents stating that you want to file it.
The trustee will then send your documents to the creditors, with the repayment terms with them.
The creditors will then have 45 days to accept or reject the proposal that’s put forward.
What types of debts can a consumer proposal eliminate?
Before you take the leap and file for a consumer proposal, it’s important to know exactly what type of debts they can eliminate.
These deals, in particular, work to eliminate unsecured debts through unsecured creditors.
And although they can’t eradicate every debt you have, they can work on the following:
- Bank loans.
- Payday loans.
- Tax, student loan and credit card debt.
Are there specific requirements?
As it’s regulated by the federal government, consumer proposals come with specific eligibility requirements.
Not only do you have to have debts below $250,000, but you always must:
- Be able to repay a portion of what you owe.
- Have a property in Canada/be a resident.
- Be insolvent (i.e you owe more in debt than what you owe).
Should you opt for a debt consolidation loan over a consumer proposal?
When looking at your options, you may come across a debt consolidation loan.
A way of consolidating your unsecured debts, it might seem the best route to take.
However, there are several risks that come with this option.
Including that it could extend your repayment period and may have high-interest rates.
Our partnered Hamilton trustees will take you through these options and showcase the risks and benefits of taking them on so that you’re never in the dark.
Filing for bankruptcy or a consumer proposal?
Both routes help to create a path to a fresh financial start.
But how do you know which relief option to choose?
While coming out of bankruptcy is arguably quicker, a consumer proposal allows you to retain all of your assets.
Declaring bankruptcy should always be the last resort.
But even though it comes with certain risks, it might be the best solution for your financial needs.
It’s vital to remember that there is always a solution, no matter what your debt situation.
Therefore, it’s worth talking to a debt relief expert as soon as possible.
Helping Hamilton residents with debt relief since 1999
Since 1999, Bankruptcy Canada has been helping residents to discover the most suitable debt relief solution for them.
We know that problems with debt don’t go away overnight.
That’s why our partnered Licensed Insolvency Trustees are here to help.
Helping you to get out of the dreaded payday loan cycle, acquire tax debt relief, escape credit card debt or whatever debt problem you’re facing, we’re your first port of call every time.
Find out more today
Do you want to find out more about filing consumer proposals in Hamilton?
Or do you want to discover your other debt relief options?
Our Hamilton office can help you solve your financial problems and find a path to becoming debt free.
Then get in contact with a trustee today by either calling (877) 879-4770 or emailing them through this online form.