What is a consumer proposal?
A consumer proposal is for those who find themselves having troubles paying their bills, despite the fact they have a pretty good job. It is also for those that have come to the conclusion their debt is too much for them to handle. It is for those that have thought about bankruptcy, but would prefer not to. Has this theme become more common each and every month?
If you see yourself in this category and have a debt of over $5,000 and under $75,000, then maybe a consumer proposal is right for you. Often times people with good steady employment find themselves unable to afford to repay everyone with full interest. Unfortunately for some, due to the size of their debt, they are unable to secure a debt consolidation loan and going bankrupt can bring with it some pretty restrictive conditions including: surplus income penalties, as well as the loss of assets including your home or car.
Maybe it’s time for a consumer proposal. The advantages of this agreement are numerous. For example, you can negotiate with your lenders to repay only a portion of the debt you owe. Also, interest that you would have otherwise paid stops accumulating once you file for a consumer proposal. Also, the debts you have that are unsecured (like credit card debt, bank loans, income taxes and payday loans) are included. And with a maximum allowable repayment period of five years, you will have plenty of time to repay your debts in an unhurried manor. You will not experience any type of wage garnishment and you don’t lose your house while the effect that a consumer proposal will have on your credit will be better compared to filing for bankruptcy. A consumer proposal also benefits your creditor, as they would get back more of their money than if you were to file for bankruptcy. It’s a win-win situation.
Just keep in mind that a consumer proposal will not be able to do everything for you. For example, if your debt is because of student loans, or house mortgage or car loans you cannot get relieve you of your obligation with those. This applies also to your support and alimony obligations, and you will not be able to pick which debts you want to include.