A consumer proposal is a legal agreement between you and your creditors that allows you to repay your debts over a period of time while protecting your assets.
A consumer proposal is a popular debt relief option for individuals who are struggling with unmanageable debt.
To begin the process of filing a consumer proposal in Port Alberni, an individual must first meet with a licensed insolvency trustee (LIT). The LIT will assess the individual’s financial situation and determine if a consumer proposal is the best option for their particular circumstances.
If a consumer proposal is deemed appropriate, the LIT will work with the individual to create a proposal that outlines the terms of the agreement, including the amount and length of the repayment plan. The proposal is then presented to the individual’s creditors for approval.
Once the proposal is approved by the creditors, the individual begins making payments to the LIT, who in turn distributes the funds to the creditors. The individual is typically required to make monthly payments for a period of three to five years, after which the remaining debts are discharged.
One of the advantages of a consumer proposal is that it allows the person to keep their assets, including their home and car, as long as they continue to make the agreed-upon payments. It also provides protection from creditor harassment and legal action, such as wage garnishment and seizure of assets.
Overall, consumer proposals are a viable option for individuals in Port Alberni who are struggling with debt and want to avoid bankruptcy. It is important to seek the advice of a licensed insolvency trustee to determine if this is the best option for your specific situation.