A consumer proposal is a formal debt relief process regulated by the Bankruptcy and Insolvency Act of Canada, and it is designed to provide an alternative to bankruptcy in order to eliminate your debts.
Consumers in Langley BC who are struggling with debt can work with a local licensed insolvency trustee (LIT) to develop a consumer proposal. The LIT will work with you to assess your financial situation and determine a manageable proposal that will be presented to your creditors. The consumer proposal will outline a payment plan that is affordable for you and one that the creditors will be willing to accept.
One of the benefits of a consumer proposal is that it allows you to avoid bankruptcy while still addressing your debt problems. It also allows you to keep your assets, such as your home and car, as long as you continue to make the agreed-upon payments.
When your creditors accept your proposal, you’ll then be required to make regular payments to your LIT, who will then pay the appropriate funds to your creditors. You will also be required to attend two credit counselling sessions during the proposal period to ensure they are budgeting for the future and setting important financial goals.
If you are considering a consumer proposal in Langley BC, it is important to work with a licensed insolvency trustee as they are the only professionals in Canada who can file a consumer proposal (or bankruptcy) for you. Unlike unlicensed debt consultants, they are fully qualified to guide you through the process, help you understand all of your options, and file the necessary documents for you to get you debt free.