A consumer proposal is a legal tool that helps a person in financial difficulty manage their debt without claiming bankruptcy. Proposals, unlike bankruptcy, is applied to unsecured debt such as credit cards. A consumer proposal doesn’t apply to secured debt such as a mortgage or an auto loan.
A Licensed Insolvency Trustee (otherwise known as a Bankruptcy Trustee) is the only professional allowed to administer a consumer proposal. During the consumer proposal process, the trustee contacts and work directly with creditors on your behalf. They will propose to settle the outstanding debt by offering to pay a portion of the remaining debt in lieu of a bankruptcy scenario. In many cases, proposals are made and accepted for a fraction of what is owed.
The benefit of a consumer proposal is that once it is in place you have five years to pay the reduced debt. With 0% interest and no additional fees, it allows you to begin the process of getting your finances back on track. Unlike a consolidation loan with a bank or other service, the debt does not need to be paid back in full. With a consumer proposal, there are no loan fees that would be paid to the bank or service helping you consolidate the loan.
If this solution sounds like it would be a good one for you then please don’t hesitate to reach out to us either by simply calling or filling out our contact form for us to get back to you.
Call us. When you call we’ll ask for some information about your situation and arrange a time when you can come to the office and meet with the trustee. From there we can then discuss what various options are available to you. We can typically book you in for an appointment sometimes that day or a day and time that is convenient for you.
Come in for your scheduled appointment. We’ll go over your situation and provide you the best options you have. No matter what your financial situation is the trustee is there to help you. What may seem embarrassing to you is not to us.
Once you’ve met with the trustee we promise that you’ll feel much better and relieved with how we can help. You can be confident you’ve just met with a certified professional who’s sole interest is what’s in your best interest, not the banks or creditors.
Don’t be shy and contact us today to find out if a consumer proposal is a right option for you.