Consumer Proposal in Quebec
Historically, Canadians are earnestly clearing their consumer debt; however, there is an indication that this trait seemed to be shifting in the opposite direction. Canadians are more confident in accommodating new debts, which triggers the increase of consumer debt in 2012. One of the provinces that contributed to an increase in Quebec. With a 9.5% average increase, Quebec gets the second rank with Alberta getting the first spot in terms of highest debt levels. So, if you feel that you are among the residents of Quebec who can no longer cope up with your debt payments. You might start to consider finding the best debt relief options that suit you. One of these options is a consumer proposal.
How does a Consumer Proposal Work in Quebec?
If you’re currently on the tailspin of filing for bankruptcy, better step back and know more about a consumer proposal. A consumer proposal allows you to enjoy the benefits that you can get from bankruptcy while having the chance to prevent your creditors from claiming your assets. So, if you’re assets are more valuable and higher than your debt and you prefer in keeping it, filing a consumer proposal might be the best option for you.
Moreover, a consumer proposal in Quebec is a transcendent way for you to resolve your debts while keeping your valuable assets at the same time. It is a legal binding between you and your creditors with the aid of a licensed bankruptcy trustee. For you to qualify, your maximum debt level must be at least $250,000 and $500,000 for married couples. If you owe as much as $10,000, a debt settlement might be a more viable option rather than a consumer proposal. This is because a consumer proposal can severely impact your credit rating.
Pros and Cons in a Quebec Consumer Proposal
- A consumer proposal in Quebec protects your assets from your creditors who can potentially get the right to claim it.
- Quebec consumer proposals are highly suggested for residents with large debts. A single individual can qualify provided his or her debt amount to at least $250,000, and %500,000 for married couples.
- You only need the creditors consisting 51% of your total debt to agree to the proposal, for the proposal to take in effect.
- You can lessen your expenses if you file for a consumer proposal than bankruptcy.
- A consumer proposal can give you a 2 points difference in bankruptcy rating, which is a very thin line. Thus, it can also damage your credit rating massively as to what bankruptcy can.
- Your consumer proposal can be annulled if in case you missed three payments.
- There are certain cases, wherein you will be required to pay back the whole amount of your debt, and can even coerce you to file for bankruptcy. In this instance, you will need to waive all your assets except the ones exempt.
Get Help Today
It does not necessarily mean that a consumer proposal suits you when you have a large number of debts. There are other debt-relief options that may be suitable for your situation. If you are still uncertain which debt solutions is right for you, GET HELP TODAY.
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.