Do you find yourself in a situation where you are having trouble paying all your bills even though you have a good job?  Have you thought of filing for bankruptcy but really don’t want to due to fear?  If you answered yes to either of those questions, maybe it’s time for you to avoid bankruptcy and consider a Consumer Proposal.

What is a Consumer Proposal?

It is a legal procedure to those who are having financial difficulties, but can still afford to pay a portion of their debt.  At our firm, we would put together a payment plan that works for both you and the creditors.  We would then present that plan to the creditors.  If and when your plan is accepted, it becomes a legal binding settlement for your debts.

Why would your creditors accept a Consumer Proposal and only get a portion of the full amount they are owed?  A Proposal is a better option for them because even though they may not get the full amount owing, they would still receive more with this option then if you were to file for bankruptcy.

Here are a few advantages of a Consumer Proposal:

  • You have the ability to negotiate to repay a portion of the full debt owing.
  • Interest stops accumulation effective the date you file for a Consumer Proposal.
  • The maximum repayment period is 5 years.
  • You can include debts owing to Canada Revenue for unpaid income taxes/HST.
  • You will be protected from your creditors as it is creditor and court approved.
  • The effect on your credit rating is less harsh than a bankruptcy.
  • You would not lose your home or any of your assets.

When you are looking at all your options, ensure you are making the most educated decision possible.  If your best option is a Consumer Proposal, let our team provide you the Fresh Start that you need and allow you to work toward the financial future you always wanted.