Mississauga, ON Consumer Proposal Services
If you are suffering from debt, you might think that the only way out as a resident of Mississauga is to claim bankruptcy. However, the reality is that there is a wide range of different options. One of the possibilities worth considering is a Consumer Proposal.
A Consumer Proposal in Mississauga provides an alternative path to debt relief. It’s worth noting that Consumer Proposals are fully regulated and a legal option for eliminating your debt.
Consumer Proposals Explained
A Consumer Proposal is essentially an offer to the creditors that you owe money too. You will work with a Licensed Insolvency Trustee to put together a proposal. The proposal will be based on your income, your assets, your current financial situation and what you can afford to pay back. You will then suggest an amount of debt that you can afford to pay as well as a time frame for how long it will take you to pay this money back. The maximum time period for completing a consumer proposal is sixty months. However, some people are able to complete theirs in a shorter period.
Once a Consumer Proposal has been filed, all debt collection processes for unsecured debts must cease immediately. This means that you no longer have to worry about issues with wage garnishment or collection calls. The consumer proposal must be approved by the majority of your creditors. If the proposal is approved then you will be able to move towards debt relief.
Benefits Of A Consumer Proposal
Aside from ending debt collection processes, there are numerous benefits of a Consumer Proposal, particularly when compared with other alternative possibilities such as bankruptcy. For instance, you will be able to cover a wide portion of your debt. In many cases, it’s possible for people to clear 80% of the debts that you have accumulated. You can also make sure that you are able to access your bank account once more if it has been frozen.
It’s also worth noting that a Consumer Proposal in Mississauga is legally binding for all your creditors. This means that you do not have to worry about issues with creditors refusing to participate. The Consumer Proposal will include all creditors and they will then be able to vote on the process. As long as the majority of creditors vote to approve the proposal, all creditors will be part of the plan. This means that all unsecured debts are included however this will not cover secured debts. As such, you will still owe money for late car payments or mortgage payments.
A further big advantage of the Consumer Proposal is that you will be able to make sure that the monthly payments are affordable. This means that you don’t have to worry about the payments feeling like a constant weight on your life. One of the reasons for this is that the monthly payments are interest-free. So, you don’t need to panic about them building up over time.
The cost of a Consumer Proposal is also known upfront. As such, you don’t need to panic about any hidden costs or the bills mounting up. A Consumer Proposal is designed to be an affordable option for those who are struggling with high levels of debt in their life.
Better Than Bankruptcy
A common misconception is that a Consumer Proposal is largely the same as filing for bankruptcy. However, this is not the case because with a proposal you will be agreeing to work to pay back more debt than you owe. This is always going to lead to a more positive perception from creditors. A Consumer Proposal is also not as damaging to your credit and does not put you back to square one in the same way as a bankruptcy. Indeed, a Consumer Proposal should be the step you consider before you move to the last resort of bankruptcy. It can be the right lifeline that you need to clear your debt.
Are you interested in learning more about Consumer Proposals in Mississauga and other forms of debt relief? We can help. We have provided support to more than 100,000 Canadians and we are confident that we can help you too. Contact us today and a friendly member of our team will be happy to ensure that you gain the answers that you need.