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What is a consumer proposal?

August 18, 2016

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If your debt load is becoming overwhelming, and minimum monthly payments are finding you no further ahead than the previous month, a consumer proposal could be the right solution for you. Many people these days are trying to manage large debt loads and are feeling maxed out. Despite the amount you owe, these debts need to be paid, and somehow you have to find a way to pay them. A consumer proposal could provide you the relief for which you are looking.

What is a Consumer Proposal

What is a Consumer Proposal?

Simply put, a consumer proposal is a legally binding formal process put forth to pay a portion or all of your debt, back to your unsecured creditors. These payments can be made over a maximum time frame of five years.

How a Licensed Insolvency Trustee can help

A Licensed Insolvency Trustee is the only professional who can assist you in putting forth a consumer proposal to your creditors. We will sit down with you to create a plan that fits with your needs, both now and in the near future, ensuring the proposed payment is something you can manage.

Once a consumer proposal is filed, your creditors will be notified, and phone calls and letters should stop. The interest accruing on your debt load will freeze, your repayment amount will be made to the Administrator of your Proposal and garnishments imposed by your regular creditors will be lifted. Should the consumer proposal be accepted by your creditors, it is legally binding for all parties affected. Continuing on a regular basis, your Administrator will forward dividend payments to each of your creditors.

In addition, a consumer proposal typically does not incorporate your assets. It allows you to carry on with existing mortgage and vehicle loans, as long as the payments are up-to-date at the time of filing, and are kept up-to-date going forward.

We believe it is important for you to understand each and every financial relief option available to you. We are happy to meet with you to discuss all options in detail and to ensure you are making an informed decision in order to gain relief from any financial stress you may be experiencing.

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