London, ON Consumer Proposal Services
Debt does not hold a bias. Look at the research and you will discover that while certain groups are more at risk of debt than others, anyone can experience money issues at some point in their lives. That’s why it’s important to make sure that you are aware of your actions if you are suffering in debt. It’s important to understand that for residents of London, there are always options for dealing with debt and gaining relief.
One possibility is a Consumer Proposal.
What Is A Consumer Proposal?
A Consumer Proposal in London is an offer that you put forward towards your creditors. This will provide an amount that you expect to be able to pay back as well as a set time. It is an offer to pay back some of the debt that you owe while wiping the rest clean. A Consumer Proposal can erase a large percentage of your debt, leaving you with less than half of what you originally owed. As such, it can be highly attractive as an option for debt relief and provides big benefits over simply filing for bankruptcy.
You might think that bankruptcy and a Consumer Proposal are the same. However, this is not the case at all and a Consumer Proposal should always be at least considered before you move towards bankruptcy.
What Are The Advantages?
There are numerous advantages of a Consumer Proposal. First, it is worth pointing out that they are often successful. This is due to the fact that they provide benefits to creditors compared to bankruptcy. If a creditor is going to get more from a proposal like this than a bankruptcy, then they will vote to approve it. Remember, only the majority of creditors need to approve the offer. If they do then all the other creditors that you have unsecured debts with are obligated to abide by the terms.
This does mean that you don’t have to worry about issues with collection processes. For instance, actions such as wage garnishment will cease immediately as soon as you file a Consumer Proposal in London. Creditors will also not be able to take any legal action against you during this process.
Why Should You Choose A Consumer Proposal Over Bankruptcy?
You might be tempted to file for bankruptcy so that you can wipe the slate clean and avoid paying back the debt that you owe. However, it’s worth noting that if you file for bankruptcy you will still need to pay back creditors as much as possible. You will also need to complete monthly payments through bankruptcy. Once you are discharged, you will still not be able to start fresh because the record of the bankruptcy will be on your report for a set number of years.
While a Consumer Proposal will also impact your credit, the effect will be less severe. This is due to the fact that you will have worked to pay off some of the debt. As such, creditors will hold you in better regard. This will be useful when you attempt to gain credit in the future.
Furthermore, through a bankruptcy, your assets will be handed over to a trustee. They will then determine what assets need to be sold to pay off your creditors. While you won’t be left with nothing and there are exemptions, you will lose a lot through a bankruptcy. With a Consumer Proposal, you can work to ensure that the monthly payments cover the debt that you owe. As such, it can be far easier and can help you avoid losing your home or your car. You won’t typically be able to keep both during a bankruptcy claim.
To get started with a Consumer Proposal, you will need to contact a Licensed Insolvency Trustee. They will discuss your options with you and ensure that you know whether a Consumer Proposal is going to be the right choice. This is always going to depend on your individual financial situation.
If you need more assistance and information about the options available, please make sure that you contact us today. Experts in the industry, we have helped more than 100,000 Canadians gain the debt relief they need and we are confident that we can provide the best support to you as well.