How Do Consumer Proposals Help You?
Take Control of Your Debt with Help from Licensed Insolvency Trustees
Canadians are in more debt than ever before. The average family owes more than $20,000 of non-mortgage debt, and repayment continues to be a challenge for many. Are you struggling with overwhelming debt? A consumer proposal can help!
What is a consumer proposal? Simply put, consumer proposals are legally binding agreements that provide immediate protection from your creditors, putting a halt to collection actions and arranging a partial repayment of your total unsecured debt.
Six Ways a Consumer Proposal Can Help You
Consumer proposals offer many benefits to people struggling with their debt.
- All Collection Actions Stop: All calls, letters, and lawsuits from your unsecured creditors immediately stop, as required by law. In many cases, wage garnishments also cease immediately.
- Interest Freeze: All interest accumulating on your debt is frozen from the date you file your proposal with a Licensed Insolvency Trustee.
- Overall Debt Reduction: In most cases, your overall debt is reduced as part of your repayment agreement. The repayment period does not exceed 5 years.
- Single Monthly Payment: Your consumer proposal arranges your debts into a single, affordable monthly payment. Payments are made to your Licensed Insolvency Trustee, who then ensures your creditors receive the repayments they have agreed to.
- Repay Debts Early: If you want to repay your debt sooner, you can do so with a consumer proposal with no added penalty.
- Rebuild Credit Quickly: Unlike bankruptcy, a consumer proposal’s effects on your credit score are not as severe, nor as long-lasting. You can recover financially and rebuild your credit sooner with help from a Licensed Insolvency Trustee.
Even though an organization may advertise they offer consumer proposals, consumer proposals can only be filed through a Licensed Insolvency Trustee (LIT). You do not need to pay an intermediary to access a LIT.
Do I Qualify For a Consumer Proposal?
- Have debts between $5,000 and $250,000, not including your mortgage?
- Have a job that will allow you to make some payments each month?
- Struggle to repay all your creditors in full, with interest?
- Have trouble getting a debt consolidation loan?
- Want to avoid bankruptcy?
You may already qualify for a consumer proposal!
If you’re struggling with debt, contact Collins Barrow Brown today. When you meet with one of our team members, we’ll review your individual circumstances and finances to make you
When you meet with one of our team members, we will review and discuss your entire financial situation and make recommendations to help you get out of debt. All our solutions are tailored to your individual circumstances, which may include filing a consumer proposal and the benefits that come with it.
Debt is, unfortunately, all too common. It can creep up on us gradually, or all at once. In many cases, debt is the result of something unexpected or a sudden change in your living circumstances. No one knows what the future holds! A divorce or a job loss can, in an instant, wreak financial havoc on you and your family. Thankfully, consumer proposals give us a way to take control of our debt, get it back under control, and rebuild our finances.
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