Saskatchewan Consumer Proposal
Consumer Proposals in Saskatchewan, SK
Debt problems aren’t by any means uncommon in Canada right now.
Credit card debt is increasing year on year, and issues with shorter-term borrowing like payday loans continue to see an upsurge all over the country.
When debts build up, that can have a knock-on effect and cause problems with regular day to day living, paying the mortgage or rent on time – even affect our ability to put food on the table.
Often, it’s possible to plan your way back out of debt carefully but when things have reached breaking point – you’ll need to consider alternative solutions.
For people in Saskatchewan, consumer proposal options exist.
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That’s where you make an arrangement with your creditors to pay down some of your debt – escaping the credit trap in the process.
Here, we’re going to look at what that means.
Licensed Insolvency Trustee in Saskatchewan, Consumer Proposal Options
Working with a licensed insolvency trustee to address your debt is the best way to get unbiased advice from a genuine financial professional.
If you live in Saskatchewan, licensed insolvency trustees are operating nearby.
At your initial free consultation, the trustee will assess your circumstances and advise as to whether a consumer proposal is a good option for you.
Generally, if you have a lot of debts but can’t afford to pay them all down, a proposal allows you some breathing space to get that done.
This is how it works.
Putting together your consumer proposal in Saskatchewan
Whether you live in some other part of Canada or you’re based in Saskatchewan, consumer proposals are designed to do a couple of different things.
Firstly, they reduce the amount of debt you need to pay.
Your trustee will put together an offer to your creditors in which you agree to pay a percentage of your total debt.
That figure will get based on the trustee’s assessment of what you can actually afford.
Once the proposal gets passed to your creditors, they get a couple of weeks to vote on whether or not to accept it.
If more than 50% of them agree, then the proposal becomes binding for all of them.
The second part of the consumer proposal equation is designed to give you some relief from the constant collection calls associated with debt.
Once your proposal has been filed, collection calls must stop.
Not only that, but interest will stop accruing on the debts too.
Often, the thing that pushes us past the point of no return – and makes multiple debts so unaffordable – is increasing interest and late-payment penalties.
When you file for a consumer proposal in Saskatchewan or anywhere else for that matter, the constant collection calls and crippling interest cease – and you can work on paying down a portion of your debt without the stresses associated with creditors.
How the Consumer Proposal Works
Once you’ve agreed on a plan with your creditors, you get to pay off your debt either with a lump sum or by installments over a set period.
Creditors may agree to accept a substantial reduction in the total amount you pay – sometimes up to 70% of your debt can get written off.
Although a consumer proposal remains on your credit report for several years – it eventually falls off the record, and you can move on with your life.
Consumer proposals are an option if you have debts totalling up to $250,000 – or double that amount for couples.
Don’t Wait to Get Help With Debt and Fall Further Behind
Here at BankruptcyCanada, we’ve helped thousands of Canadians just like you to escape from debt and begin living stress-free again with a fresh start.
Debts don’t just disappear, unfortunately – and the longer you let them rumble on, the worse the situation and the higher the balances get.
Our friendly advisors are always available to talk through your specific situation.
Call us today on (877) 879-4770 (24/7) for a free, no-obligation discussion – we’re here to help.
Information on Consumer Proposals
Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal