Toronto Consumer Proposal

Consumer Proposals in Toronto, Ontario

If you’re looking for an efficient and effective way of reducing your debt, look no further than a Consumer Proposal in Toronto.

An alternative to filing for bankruptcy in Canada, it’s becoming a very popular solution.

But what exactly is it?

A Consumer Proposal in Toronto is a formal, legally binding process that helps to prevent you from going bankrupt.

Administered by a Licensed Insolvency Trustee (LIT) it’s essentially an offer that you’re proposing to your creditors, detailing how you will repay them within a five-year period.

This will either be a specific percentage of what you owe them, a request to extend the repayments or a combination of the two.

Why You Should Complete Your Consumer Proposal in Toronto

If you’re interested in filing a Consumer Proposal, it’s important to first understand why you should do it.

This type of debt relief makes sense in the following situations:

• You can successfully cover the payment each month, even after your monthly living expenses are taken out of your account.
• You’re unable to repay the full amount of debt and need the payments to be cut down into more manageable chunks.
• Your unsecured debts are lower than the value of your assets.
• Your debts do not exceed $250,000 (except for those that are secured against your residence).
• You wish to keep your assets.
• You want to avoid bankruptcy.
• You work within a profession that requires you to disclose bankruptcy.

Of course, it’s advisable that you get in contact with a Licensed Insolvency Trustee early on in the process to determine whether a Consumer Proposal is the right option for you.

Which Debts Are Included?

Another key piece of information that you should know surrounding a Consumer Proposal in Toronto is what type of debts are included in it.

To help clear this up, here are 5 of the main debts that it covers:

• Tax debt;
• Student loan debt;
• Credit card debt;
• Bank loans;
• Payday loans.

Benefits

So what are the main benefits of opting for a Consumer Proposal over filing for bankruptcy?

Well, not only can you reduce your debts by up to 70%, but you can also take advantage of the following:

• You’ll be able to keep all of your assets;
• Wage garnishments are stopped;
• You’ll no longer have to face collection calls;
• All of your debts are consolidated into a manageable monthly payment;
• Debt interest is immediately freezed;
• An end to the majority of legal action against you.

What You Should Know About Your Toronto Consumer Proposal

During your initial interview with your trustee, you’ll discover that there is a settlement period that can last up to 60 months.

Of course, this is on a case-by-case basis, but by being aware of this, you’ll be able to regain your holding on your finances.

Get in Contact with Bankruptcy Canada Today

If you’re looking for a bespoke solution and advice surrounding filing a Consumer Proposal in Toronto, look no further than Bankruptcy Canada.

Experienced and skilled within the industry, we have the best advice in debt relief that will help you to get a fresh start.

If you are experiencing financial problems, a proposal can be a powerful debt management tool.

If you would like to pay your debts but cannot quite get there, a proposal allows you to repay a portion of your unsecured debts.

You can only pay off unsecured creditors in a consumer proposal because secured debts cannot be listed in your proposal agreement.

When you file a proposal it will remain on your credit report for three years, although it won’t damage your credit score as badly as a bankruptcy filing would.

To find out more, get in contact with one of our local and licensed trustees today by either calling us on (877) 879-4770 or by filling out the online form.

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

Gordon Sands