Bankruptcy and Insolvency Act also provides another option for people looking to settle their debt with creditors.
Preparing for a consumer proposal can help in debt relief.
An alternate route instead of filing for bankruptcy is the preparation of a consumer proposal that provides debt relief only on unsecured loans like credit card, income tax debts, or personal loans.
If a debtor total debt value of unsecured loans is less than $2,50,000 and more than at least $1,000, then they can file for a consumer proposals, while the secured loans like car loans or mortgages will be excluded, as per the bankruptcy regulations in Bridgewater, Canada.
Filing for bankruptcy in Bridgewater
In Canada, there are millions of small, medium and large size businesses, which are both incorporated and not incorporated in nature.
According to debt relief options in Bridgewater, consumer proposals are a good option for debts taken by individuals and don’t include business debt relief.
A business that small in size and doesn’t stand incorporated and owes a debt to a creditor, then this kind of debt can become part of the consumer proposal.
Often, small size business owners require debt relief as they keep gaining experience while consolidating their business and exploring newer shores.
This, in turn, can increase the size of their debt but with limited earning capacity.
By filing for the consumer such business owners can continue business consolidation, and get debt relief as well.
Due to the stay of proceedings post-filing for a consumer proposal, creditors are not allowed to seize or overtake any of the assets of the business owner.
For the self-employed in Canada, a consumer proposal can provide effective relief from debt in a few easy steps and can prove highly beneficial to restructure their debt for business growth.
Preparing for consumer proposal also allows retaining assets like home, and savings and ensures relief from debt with payment of small portion.
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Bridgewater NS B4V 1B7
Canada