Bankruptcy Canada > Money Problems Blog > Consumer Proposals > Toronto Consumer Proposal

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.

Please post a follow up comment below:

(Note: Comments are reviewed before posting.)