What are Consumer Proposals?
Consumer proposals are legal abiding debt settlement agreements, which are filed through a Licensed Insolvency Trustee, to pay back creditors a certain proportion of what you owe according to your financial situation.
Your terms of payment depend on the negotiation between what you can afford to pay and what your creditor expects to get. Your credit counsellor will guide you through the process to obtain the best possible solution for you.
A consumer proposal plan offers debt relief for Canadians struggling with their debts while avoiding going bankrupt.
Will a Consumer Proposal do away with debt?
Consumer proposals can eliminate most if not all of the following debts:
- Credit card loans and Unsecured Line of credit
- Bank loans
- Student loan debts
- Personal & Business Taxes
- Payday loans
Benefits of the Consumer Proposal plan
As a significant factor in filing insolvency, a debt proposal offers a lot of advantages over other options of debt relief. Some of them include:
- It prevents bankruptcy
- It puts an end to calls from wage garnishments and collection agencies
- It lawfully binds all creditors
- It freezes interest on debts
- It merges debts into a small monthly payment
- It allows you to save your property
- It can reduces your liability by up to 75 percent.
What are the qualification requirements to file a
Consumer Proposal in canada?
As a regulated program acknowledged by the Canadian government, proposals have a particular requirement you will meet to be eligible and qualified for filing consumer proposals. Below, we will look into these eligibility requirements:
You must either have a property in Canada or be a resident of Canada.
Excluding your mortgage, your unsecured loan should not surpass 250,000 dollars.
You must be insolvent. This means that you can no more keep up with debt payments as they become due.
You must be capable of paying a part of your debt.
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