The Top Reasons you Need to consider the Consumer Proposal

By Marc Nantel-Legault

If you’re in over your head in debt, you may wonder what options you have outside of bankruptcy. While a bankruptcy can wipe the slate clean, it has its damaging effects on your credit score and you may loose certain assets.

One of the most common alternatives is the consumer proposal or an agreement to pay less than the full amount, negotiated with your creditors. The moment you file a consumer proposal, all collection activity stops and you can breathe a sigh of relief.

Why should you consider a consumer proposal? Here are the top reasons.

You don’t have to File Bankruptcy

If you file for bankruptcy, you may lose some of your assets. Plus, it goes on your credit report for a period ranging from 7 years to 17 years, leaving you without financing from ‘top’ lenders for quite a while. In a bankruptcy, you could lose any assets that aren’t “essential” or exempt of seizure but with a consumer proposal, you typically don’t lose any assets.

You’ll Make One Payment

If you’re tired of figuring out which creditor to pay each month because you don’t have enough to pay them all, you’ll love the consolidated payment you make with a proposal. You have one payment that you make each month (it doesn’t change). You pay your trustee and they distribute the funds as necessary. 

You’ll Stop being Harassed

No one likes phone calls from creditors or collection agencies. Once you file a proposal, creditors will be notified and calls will stop. If one of them or a collection agency contacts you, simply indicate you are in consumer proposal, give your file number and our information and they have to deal with us directly.

You will be Released from your Debts

If you follow the approved consumer proposal and make all payments, you’ll receive a certificate of full performance that indicates that you’ve completed your payment requirements for the debts. Even though you didn’t pay the debt in full, you are released from all of the dischargeable debts.

It’s a Fresh Start

We could all use a fresh start now and again. It’s okay to ask for it. There’s no shame in admitting you can’t afford your debts. You are more powerful and responsible for admitting that you have a debt problem and need help.

Once you satisfy the consumer proposal agreement, you’re on your way to a fresh financial start. We’ll be here for you every step of the way, guiding you to the right financial decisions so you don’t end up in that situation again.

Bottom Line

Don’t let debt ruin your life. If you’re in over your head and can’t make heads or tails out of what you owe, let us help. We’ll go over your options with you, helping you understand the difference between a bankruptcy and a consumer proposal.

We’ll look at the pros and cons and help you decide which option suits your needs the most so you get out of debt and stay there. 

Recently posted.