A consumer proposal is a legally binding agreement between you and your creditors that allows you to repay only a portion of your debts over a set period of time.
When you file a consumer proposal in BC, you work directly with a Licensed Insolvency Trustee (LIT) to develop a repayment plan that is based on what you can reasonably afford to pay. Your LIT will also negotiate with your creditors on your behalf to reduce your overall debt and stop any further interest from accruing.
Once your proposal is approved by your creditors, you will make a single, interest-free monthly payment to your LIT, who will distribute the funds to your creditors. This can help simplify your debt repayment process and make it much more manageable.
One of the advantages of a consumer proposal is that it allows you to avoid bankruptcy. Instead, you can work to pay off your debts in a more manageable way while still protecting your assets and income. No legal action can be taken by your creditors, such as wage garnishment or freezing your bank accounts, and the harassing collection calls will immediately stop.
If you are considering a consumer proposal in Kamloops BC, it’s important to speak with a Licensed Insolvency Trustee who can help you understand your options and develop a plan that works for your unique situation. Your LIT can also provide guidance on how to rebuild your credit after your debts have been repaid.