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.
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 A 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 in a Toronto Consumer Proposal?
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:
Toronto Consumer Proposal 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.
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.