Sarnia, ON Consumer Proposal Services

How to Avoid Bankruptcy in Sarnia, Ontario

Situated in southwestern Ontario, Sarnia is a city known for its arts scene and thriving leisure and recreational facilities. With great schools, excellent healthcare facilities and a relatively moderate cost of living, Sarnia is a popular place to live for families, young professionals and retirees. Like most areas in Canada, however, the debt crisis is affecting Sarnia and its residents. Due to this, many people are looking for realistic and effective debt solutions. If you’ve never needed to access help with your debts before, you may be unaware of the options that are available to you. Consumer proposals in Sarnia are a particularly effective way of resolving spiralling debt problems. As a form of insolvency, a consumer proposal should never be seen as an ‘easy way out’. However, they do provide a lifeline for people who are unable to repay their debts in full.

Can You File a Consumer Proposal?

If your debts are less than $250,000 (excluding a mortgage on your home) and you’re able to make a monthly payment towards your debts, you could be eligible to file a consumer proposal. Although you will need to be able to afford to pay a set amount each month, the exact amount you’ll need to pay will be dependent on your personal circumstances. If you’re working or have an income from another source, there’s a good chance you’ll be able to make a consumer proposal. Unlike many other debt solutions, a consumer proposal isn’t something you have to handle alone. The process is governed by the Bankruptcy and Insolvency Act, which stipulates that it must be managed by a licensed insolvency trustee (LIT). For debtors, the fact that a LIT is required to handle the entire process can be a great weight of your mind. You can be sure that your consumer proposals in Sarnia will meet the legal requirements and contact your LIT to ask questions at any time. Furthermore, your licensed insolvency trustee will liaise with your creditors, the Bankruptcy Court and the Office of the Superintendent of Bankruptcy (OSB) on your behalf. When you’ve been struggling to manage your debts alone for some time, having support from a reliable professional can give you confidence that change is on the horizon. By reducing your debts and switching to one, affordable monthly repayment, making a consumer proposal can significantly relieve any financial pressure or stress you’re under.

Will Consumer Proposals in Sarnia Reduce Your Debts?

Yes! When you file a consumer proposal, you’re essentially asking your creditors to accept a reduced sum in exchange for settling your debts. In fact, a consumer proposal could reduce your total debts by up to 80%. Most people assume that their creditors will be unwilling to accept such a proposal, but you’d be surprised at how easy it can be to negotiate this type of agreement. The formality of a consumer proposal highlights the financial difficulty you’re experiencing, which encourages creditors to accept the terms you’re suggesting, providing they are fair and reasonable. Creditors are always eager to stop debtors from declaring themselves bankrupt, as this often means they receive nothing at all. Due to this, consumer proposals are routinely accepted by creditors, even if it means the debt is significantly reduced.

How Long Does A Consumer Proposal Last?

A consumer proposal can last for a maximum period of five years. However, the exact terms of consumer proposals in Sarnia will depend on how much you need to pay back in total and how much you’re able to repay every month. In some instances, it may be possible to end your consumer proposal much more quickly than the maximum five-year term. However, it’s important to be aware that a consumer proposal will remain on your credit file for some time after it’s been completed. Generally, consumer proposals in Sarnia are visible on your credit file for three years after they have been discharged. However, you can obtain credit during this time and begin repairing your credit rating. If you are looking for a way to become debt free in Sarnia, Ontario making a repayment plan through a consumer proposal with your creditors is a great start. If your financial situation has become shaky, then you might want to consider a debt management plan or debt settlement agreement. Getting a debt consolidation loan is also a possibility, but a consumer proposal offers many benefits and advantages.

Contact Bankruptcy Canada Now

If you’re experiencing financial difficulties or you want to resolve debt problems, it’s important to seek help and advice from a reputable source. At Bankruptcy Canada, we’ve been helping people to resolve their debt issues since 2004 and we’re on hand to help you too. By speaking to a licensed insolvency trustee, you can find out more about making a consumer proposal and decide whether it’s the right option for you. Why wait? Contact us now at (877) 879-4770.

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I was feeling overwhelmed by my credit debt, constantly receiving calls and letters from debt collectors, which caused a great deal of stress. It seemed like there was no way out of this situation. However, I discovered Bankruptcy Canada while listening to my local talk radio station. This organization proved to be friendly, empathetic, knowledgeable, and professional, with extensive experience in their field.

During our initial meeting, they took the time to understand my debt and financial circumstances. They explained the various options available to me and helped create a personalized plan that would be most beneficial for my situation. With their assistance, I was able to avoid declaring bankruptcy by presenting a consumer proposal to my creditors. Fortunately, my proposal was accepted, and I am extremely relieved to finally be free of debt, all thanks to BankruptcyCanada. The burden on my shoulders feels significantly lighter now, and I truly believe that Bankruptcy Canada has the most skilled specialists in debt relief.

Geoffrey,

Toronto