Consumer Proposal

Consumer Proposal Advantages

In addition to the freedom a consumer proposal offers, individuals enjoy these other benefits:
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Keep your assets

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Most wage garnishment orders are stopped

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Creditors are no longer allowed to harass you for repayment

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Consumer proposals are binding on all creditors once the creditors holding the majority of the debt approve – so minor creditors cannot hold up the process

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Repay less than you currently owe

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Interest stops accruing on the day you file

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Bankruptcy is avoided when you follow through on your consumer proposal

What is a Consumer Proposal and how long does it take to complete?

A consumer proposal is a legally binding, negotiated settlement between a debtor and their creditors. A Licensed Insolvency Trustee such as Doug Lee & Associates Inc. can help put together this settlement and establish a payment that makes sense for both parties. This payment is based on the individual’s income level, the assets that they own, the amounts owing, and whom they owe money to. This payment is made monthly, and structured over a term of no longer than 5 years. There is no penalty for paying if off sooner than negotiated.

Lowering the total debt in this manner is very freeing and helps you see the light at the end of the tunnel. All the administration fees are set by legislation and included in your monthly payment, so it’s the only payment you need to worry about. You have real hope of paying off your creditors so that you can make a FreshStart financially. Having one payment that is split among your creditors also frees up money in your budget for other expenses.

Consumer Proposal requirements

The FreshStart that a consumer proposal offers is available to those who have unsecured debts of $250,000 or less. You must also have a source of income to make monthly payments. (Some debt, such as mortgages, Canada Revenue Agency bills and secured loans cannot be settled through a consumer proposal. )

Once your consumer proposal is approved, you must attend two financial credit counselling sessions. These sessions will assist you with rebuilding your credit and your budget going forward.  There is no additional fee for the sessions. You are also required to keep up to date with your consumer proposal payments, as falling three full payments behind annuls the agreement, and revives your creditors’ rights.  All in all, however, these requirements are minor, especially when you consider the freedom you will enjoy once the consumer proposal has been paid off.

What debts can I include in my Consumer Proposal?

Consumer proposals cover most unsecured debts, including:

  • Credit cards
  • Overdraft
  • Unsecured lines of credit
  • Loans (bank, finance company, payday)
  • Personal loans from family, friends and others
  • Student loans
  • Income tax debt
  • GST

What is the first step to take?

Contact us and set up your FREE consultation. This consultation will give us the opportunity to evaluate your circumstances and provide you a clear picture of what to do next. Regardless of your specific financial problems, you owe it to yourself to get a financial FreshStart and rebuild your future. Doug Lee & Associates Inc. has helped many people overcome their debt problems, and we can help you as well!

Get Started and Contact Us Now!

Doug Lee & Associates Inc. (FreshStartBC) will provide you with a FREE consultation, so contact us today and start working towards your FreshStart.

Book your FREE confidential, no obligation consultation today.