How a Consumer Proposal is Your Path Towards Financial Freedom
Suppose you and I were to converse over a cup of coffee discussing our financial landscapes. Our discussion might steer towards an intriguing financial mechanism known as a Consumer Proposal. This is an officially sanctioned legal recourse that can alleviate a substantial portion of your outstanding debts like credit card dues, tax liabilities to the Canada Revenue Agency (CRA), bank overdrafts and even longstanding student loan debt.
Imagine if I told you that this mechanism could potentially eliminate up to 70% of your debt, and furthermore, all accruing interest and penalties would be halted the moment your agreement is ratified. It sounds unbelievable, doesn’t it?
Debt Reduction Through Consumer Proposal
If you’re contemplating, “What’s the catch?” or “Why haven’t I heard of this before?”, you are not alone. These questions often arise when discussing the concept of a Consumer Proposal. “Bankruptcy” is a term that most people are familiar with but surprisingly, the concept of a Consumer Proposal remains largely undisclosed. It’s one of Canada’s best-kept secrets and an exemplary tool for mitigating debt issues by negotiating a settlement with your creditors.
If your total debt does not exceed $250,000 and you are a resident of Canada (or have assets like a Registered Retirement Savings Plan (RRSP) in a Canadian financial institution), a Consumer Proposal could be your key to financial recovery.
Understanding the Consumer Proposal Process
The process is straightforward. A professional from Bankruptcy Canada will conduct a free consultation to understand your financial circumstances and devise a settlement offer tailored to your needs. This offer could be as low as 30% of your total outstanding debt.
Suppose you have a debt of $40,000. In that case, your Consumer Proposal could potentially reduce this amount to $12,000, translating to monthly payments of just $200. The accruing interest is halted once the proposal is filed and the creditors are promptly notified.
The creditors are presented with the proposal and have 45 days to either accept it or provide a counteroffer. With an acceptance rate of 98%, most Consumer Proposals are usually accepted and have a tenure of five years. However, you have the flexibility to repay it sooner without any penalties or additional fees.
If you find yourself drowning in a sea of bills that seem to increase with every passing month, take heart. There is a solution that can significantly reduce your debt. All it takes is one simple phone call to Bankruptcy Canada.
Take the first step towards reducing your debt today.
