Consumer Proposals in Woodstock
Woodstock is known as Ontario’s “Friendly City”. But when your household debts start to encroach on your household finances and impinge on your quality of life, things may not seem quite so friendly.
Ontario is one of Canada’s most debt-ridden provinces, along with Alberta and British Columbia. These territories account for 3 out of every 4 dollars of non-mortgage debt in Canada. Debt can easily become a slippery slope. As budgeting and saving become more of a challenge, you may find that your only option is to draw on different credit sources. And as your credit rating dips, you can expect interest rates to rise.
A Consumer Proposal in Woodstock can help you to break the Payday Loan cycle and get debt-free in as little as 5 years.
What is a Consumer Proposal?
A Consumer Proposal is a debt-relief option that’s somewhere between a Debt Management Plan and Personal Bankruptcy. You can read more about how Consumer Proposals and Bankruptcy differ here.
To set up a Consumer Proposal, you need to go through a Licensed Insolvency Trustee. Click Here to find one in your area. They will look at your circumstances, your income, your debt and your specific circumstances, and based on their findings they will help you to put together a proposal that will be manageable for but also appealing to your creditors.
This is then submitted to your creditors, and if 51% or more of them agree to the proposal, they are all bound by its terms. Even if they didn’t agree to them originally.
What are the benefits of a Consumer Proposal?
There are a number of reasons why a Consumer Proposal is appealing to those who want to live free of debt. Let’s take a look at some of the advantages of this debt relief option…
Reduce your principal debt
A Debt Consolidation Loan or a Debt Management Plan may be able to help you save money on interest. With a Consumer Proposal in Woodstock, however, you can also waive some of the principal (the amount you’ve borrowed). Indeed, in some cases, this may be reduced by up to 80%.
Say goodbye to interest
A Consumer Proposal doesn’t just reduce interest like consolidation does. It waives interest altogether, along with any other charges or fees. His, combined with a reduction of principal debt means that you can pay your debts down much faster. In fact, most Consumer Proposals are settled within 3-5 years.
Can be used for all kinds of debt
There are some forms of debt to which a Consolidation Loan or Debt Management Plan cannot be applied. These are usually government debts such as student loan debts (as long as they are over 7 years old) and money owed to the CRA.
However, a proposal can be leveraged against all kinds of debts, including money you owe to the Canadian government.
A Debt Management Plan is entered into voluntarily by your creditors, and they can back out at any time for any reason. A Consumer Proposal, on the other hand, is legally enforceable at both ends.
Eases the stress of debt
A proposal put an instant stop to threatening phone calls, obnoxious letters and draconian punitive measures like wage garnishment. This can help to reduce the anxiety and guilt surrounding your debts, so you can look to the future with a sense of hope and optimism.
Are there any disadvantages to a Consumer Proposal?
While a Consumer Proposal certainly has its advantages, it also has its fair share of caveats. You owe it to yourself to learn about them so that you can make a fully informed decision.
- A Consumer Proposal is a matter of public record, and will remain on your credit report for 3 years after it has been settled. This may affect professional licenses and employment opportunities.
- It is generally more costly than filing for Bankruptcy.
- A Consumer Proposal cannot be leveraged against mortgages or secured debts.
- While you can generally keep more assets than if you apply for Bankruptcy, you may not be able to keep all of them under a Consumer Proposal.
- It is your legal duty to adhere to the terms of your proposal. Miss more than 2 payments and your only option will be Bankruptcy.
Not sure if a Consumer Proposal is right for you?
Since 1999 we’ve been helping Canadians from all walks of life to find the right debt management solutions for their needs. To date, we’ve helped over 200,000 people just like you to make an informed choice to drive down their debts and achieve financial freedom.
Our licensed debt relief experts in Woodstock, Ontario have years of experience with helping people get a fresh financial start.
If you are dealing with financial problems you can speak to our friendly and caring experts about bankruptcy in Woodstock as well as how to file a consumer proposal.
At your initial consultation we will sit down with you to understand the cause of your problems so we can help you formulate the right plan to get out of debt.
Still not sure if Consumer Proposals in Woodstock are the right choice for you? We can help you to understand all of your available options and give you true peace of mind. Call us today on (877)879-4770. We’ll be delighted to arrange a risk-free, zero-obligation and 100% confidential callback.