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A Consumer Proposal is a formal agreement between you and your creditors to pay back what you can afford towards your debts.
Once in place it is an extremely powerful legal tool to help you back on the road to financial stability. It is designed for people who have taken out too much debt and are struggling to meet their monthly repayments.
The minimum repayment period for a Consumer Proposal is 60 months* (5 years) unless an alternative arrangement is agreed. You will be required to pay a set amount per month for the 60 month (or longer) period. At the end of term, provided that you have met your obligations and the Consumer Proposal is not extended, you will be discharged from any obligations and outstanding unsecured debts.
Yes absolutely. The Consumer Proposal was established and is governed by the Office of the Superintendent of Bankruptcy and constitutes a formal repayment proposal presented to a debtor`s creditors via a licensed Insolvency Trustee.
See more information hereHere is an example of how a Consumer proposal make your debts affordable.
1 | Personal loan | $8,000 |
2 | Credit card 1 | $6,812 |
3 | Tax Debts | $5,399 |
4 | Over payments | $5,200 |
5 | Overdraft | $700 |
Total Owed | $30,204 |
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.
To qualify you must meet the following criteria:
We make it as easy as possible. Here’s how:
Our initial advice is free and there is no cost if you change your mind after having met with one of our advisers. Should you choose to enter into the debt solution then there will be a charge for our services. Your adviser will explain this fully and will answer any questions you may have.
We are one of Canadas leading debt solutions companies and help thousands of people each month become debt free. We can provide advice on Consumer Proposals, Debt Consolidation, Debt Settlement, Credit Counselling and Bankruptcy.
Getting hassle from a creditor or debt collector?
Dealing with creditors and debt collectors can be daunting. Harrassing phone
calls, debt letters and home visits are enough to increase stress levels and
make you bury your head in the sand further.
We created these handy guides section on how to deal with creditors, debt
collectors and bailiffs. Simply search for the company thats corresponding
with you and read our guide on how to deal with them.
Each guide comes with expert advice, videos, tips and downloadable letters
which you can use to keep them at bay
Getting hassle from a creditor or debt collector?
Dealing with creditors and debt collectors can be daunting. Harrassing phone
calls, debt letters and home visits are enough to increase stress levels and
make you bury your head in the sand further.
We created these handy guides section on how to deal with creditors, debt
collectors and bailiffs. Simply search for the company thats corresponding
with you and read our guide on how to deal with them.
Each guide comes with expert advice, videos, tips and downloadable letters
which you can use to keep them at bay
Got a question? Maybe we can have an answer for you here…
A consumer proposal does not usually involve losing any assets such as your home. If you continue to make payments on your mortgage and vehicle loans as needed, you should be able to keep these assets. As long as your creditors agree to your proposal, you are allowed to keep the assets that you own.
Money invested in RRSPs is typically protected under a consumer proposal (with some exceptions) and money invested in RESPs and TFSAs may also be protected under a consumer proposal.
Your trustee will provide you with specific information on what will happen to your assets before you make the decision to file a consumer proposal. However, a consumer proposal does not generally involve surrendering assets.
The amount of debt that can be written off in a consumer proposal varies widely as it depends on your debts and your creditors. When making a consumer proposal you must offer your creditors more than they would receive if you were to go bankrupt.
Generally, you will repay 30 to 40% of your debt during a consumer proposal over a period of time lasting up to 60 months (5 years).
Your proposal administrator (only a Licensed Insolvency Trustee can act as a proposal administrator) will examine your assets, income and budget to determine what you would pay in a bankruptcy and what you can afford to pay to your creditors under a proposal.
The trustee will use this as a guide to determine your consumer proposal amount.
The cost to file the proposal is covered by the payments under the consumer proposal; there is no additional payments to be made.
Payments can be spread over a maximum of 60 months. If you can afford more each month, you can shorten your proposal term or offer a lump sum payment.
Once your proposal documents are signed they will be electronically filed with the government and your creditor protection starts. At that time, you stop making payments to your creditors.
Failing to vote is considered a yes vote.
It is possible to negotiate to try to obtain agreement.
There are three rules of thumb for a successful consumer proposal:
Peter CoteQuebecFriendly and helpful staff. Kept me informed and explained every step. No judgement just honest help.
Simon TremblayOntarioSuch an easy process from start to finish. The staff were so friendly and helpful. My only regret is I didn’t do it sooner.
Lewis FournierAlbertaWould recommend to anyone who is struggling with debt. Great staff and friendly, helpful service A+++++
David LapointeNunavutAbsolute lifesavers!!! Feel like massive weight has been lifted from my shoulders. Would recommend to anyone who is having problems and need financial advice. Couldn’t have asked for a better service. Thank you so much.
Russel NadeauNova ScotiaThe most difficult part was making the first call. Every step after this was made easier by the supportive staff and easy to use technology. The best decision I have made in a very long time.