Consumer Proposal in Alberta
Throughout Canada, there’s a significant decrease in the number of residents borrowing from 2009 up to 2011. In fact, the yearly average of consumer debt dropped by about 8%. These numbers imply a positive course in the economy. However, this trend did not prosper in the succeeding year in 2012, where Canadians credit card debts and unsecured loans increased by 6%.
Though this is the average accumulated as a whole, some provinces had a significant increase of over 6%. One of which provinces is Alberta. The residents in Alberta had far more numbers of recorded debts compared to the other province or territory. The residents of Alberta contributed approximately 11% of debt and reaches about $37,400 at the start of 2013.
The growing number triggered an alarm. Many residents are having trouble coping up with their debts, especially those who have huge debts. The increase in the interest charges is making it more difficult for the residents to pay their minimum debt payments.
What Is Consumer Proposal in Alberta
A consumer proposal is an arrangement designed to be presented to your creditors for settlement of your debt and to lay out terms on how you can pay it off. It is a legal binding arrangement that has to be agreed upon by you and your creditors. In a consumer proposal, there is a great chance for you to wipe out your large debt and even have most of the amount forgiven. It allows you to pay off your debt in small amounts that you can afford. Moreover, you meet the following criteria to qualify for a consumer proposal in Alberta.
- You must be unable to pay your overdue debts, or have stopped making payments for your past due bills.
- You must owe at least $1,000 to $250,000 if filing as a single individual and $500,000 if filing for a joint consumer proposal (married couples, business partners).
- The value of your assets must not be enough to cover your debt payments.
- You need to contact a licensed bankruptcy trustee to negotiate with creditors.
Furthermore, your consumer proposal to be implemented, it has to be approved by the creditors holding 51% of your total debts. The other creditors might reject it, but having the approval of 51% initiates the binding on all your creditors.
Pros and Cons of a Consumer Proposal in Alberta
- The expenses that you need to shoulder in a consumer proposal is lesser than when you file for bankruptcy.
- Your creditors or debt collectors is prohibited to collect your debts when filing for a consumer proposal
- Your valuable assets will be secured and protected
- A consumer proposal will prosper whether the other creditors rejected. This is when 51% of your debts help by the simple majority agreed to the proposal. The other creditors who rejected are hereby to abide.
- A consumer proposal can also impact your credit rating; this damage will remain for up to 7 years.
- Your proposal will not be implemented when the creditors holding 51% of your total debts will reject it.
- Though it allows you to pay what you can afford, your bankruptcy trustees are obliged to ensure that your creditors will be compensated as much as its worth.
A Helping Hand
People experience financial difficulty at some point in their lives; however, it is a relief knowing that help is always available. ConsumerDebtAdvice.ca promises to keep things fair and straightforward when dealing with your financial struggles and shortcomings. Moreover, ConsumerDebtAdvice.ca provide help and advice to people on the most common debt solutions such as;
- Consumer Proposals
- Debt Settlement
- Debt Consolidation
- Credit Counselling
- Credit Card Debts
Seek for reliable tips and effective solutions on how to overcome your financial constraints; it is never too late to get started, your road to financial freedom relies on the decisions you make now.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.