If you’re in debt and the word “bankruptcy” keeps popping into your head, you might already be thinking about the stress and uncertainty that goes with it.
You wouldn’t be alone.
Canadians across the country have been drowning in debt in recent years, and the COVID-19 pandemic has caused Canada’s unemployment rate to spike to over 13%, so more people than ever are likely experiencing hardships.
However, being in debt when you’re trying to recover from an illness or injury can be even scarier and more overwhelming.
The last thing you want to have to worry about is losing your home or other assets.
Additionally, you may not be able to afford the payments due when you file bankruptcy.
Thankfully, there is another option, and you don’t have to go through the process on your own.
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Filing a Consumer Proposal
Instead of automatically turning to bankruptcy, talk to a Licensed Insolvency Trustee (LIT) to determine if a Consumer Proposal is a viable option for you.
A Consumer Proposal allows your write up a “proposal” to your creditors, suggesting what you can pay and the terms surrounding it.
Once the proposal is submitted, your creditors can either accept it or deny it, though they are most often accepted because it ensures your creditors that they will at least be getting some of their money.
To your benefit, a Consumer Proposal gives you flexibility.
In some cases, you may be able to wipe out 70-80% of your debt.
Then, you’ll decide on how much to pay each month.
As long as you make consistent payments, your creditors cannot come after you.
You only need to owe $1,000 in debt in order to consider a Consumer Proposal.
It won’t disrupt your life the way bankruptcy will, which can be extremely important if you’re trying to recover from an illness.
Your main focus should be getting strong, and if you’re not able to work because of your illness, the last thing you want to do is worry about a mountain of debt or the potential dangers that come with bankruptcy.
If you’re dealing with a health condition, illness, or injury and you’re worried about your debt, feel free to contact Bankruptcy Canada today.
You don’t have to deal with your debt alone.
One of our experienced Licensed Insolvency Trustees will be happy to work with you to determine your best options for getting out of debt and moving forward with your life so you can be healthy again.
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