Consumer Proposals

Got Debt? You have options.

Struggling with your debt? With a consumer proposal, you have the opportunity to make an arrangement with your creditors by repaying a portion of your debt with a clear pathway to debt-dissolution, while avoiding the consequences of bankruptcy. If you’re considering bankruptcy as solution for your personal debt challenges, your first step should be considering whether or not a consumer proposal is right for you.

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If you’re ready to get relief from debt, or if you’d simply like to learn more about us, we can’t wait to hear from you.
We do our best to respond to all inquiries within 24 hours.

What are Consumer Proposals?

As an alternative to bankruptcy, a consumer proposal is a deal negotiated by a Licensed Insolvency Trustee between you and your creditors. With a consumer proposal, you repay a portion of your debt with your creditors agreeing to forgive the balance. Unlike bankruptcy, consumer proposals require creditor approval, however, this option is typically preferred by creditors as they prefer that their customers avoid bankruptcy. With a repayment plan agreed upon, this legally binding agreement provides immediate protection from debt collectors, including debt collection, wage garnishments, and prevents any further debt from accumulating on your outstanding accounts. Unlike bankruptcy, your assets and “surplus income” are protected and your credit score will not be affected as negatively as it will with a bankruptcy. If you’re wondering if a consumer proposal is right for you, contact us today for a free debt consultation and see how easy it is to break free from debt.

What is Credit Counselling?

Credit counsellors are generally employed by not-for-profit agencies and offer various counselling associated with household expenses and maintaining a positive budget. Credit counsellors also offer something called a Debt Management Program (DMP). This DMP is geared towards having your interest reduced to 0% and full payment of the balance of your debt. Creditors participate in this program voluntarily and can withdraw at anytime. Some creditors elect to not participate at all.

What is Debt Consolidation?

Debt consolidation is in essence, a loan. A bank or finance company will lend you enough money to pay off all your debt and even catch up on some bills like cable and rent. The loan will carry an interest rate and in most cases, at least when dealing with a bank, you will be required to provide a co-signer. Finance companies may not require a co-signer but the interest can be as high as 60% per annum.

Benefits Between Consumer Proposals And Debt Management Programs or Debt Consolidations?

Of the three, consumer proposals should be the last consideration but, in most cases, will be the most viable option. The exception here would be if your credit score is still good and you have the income to make higher payments – you may want to try corralling your debt into one of these programs instead.

Caveat aside, a Consumer Proposal is a legal proceeding and with that comes strength against your creditors. Under a consumer proposal, creditors must stop collection activities, including garnishments.

Also creditors don’t singularly have the option of joining or leaving a consumer proposal. If the majority of your creditors accept the consumer proposal, the consumer proposal is binding on all of your creditors.

You also don’t need to apply for credit or get a co-signer to file a consumer proposal and there is no interest rate!

A Consumer Proposal may not be right for you. Learn more about the benefits of Bankruptcy.

Ready to begin your debt-relief process? Contact us today!

If you’re ready to get relief from debt, or if you’d simply like to learn more about us, we can’t wait to hear from you. We do our best to respond to all inquiries within 24 hours.