1. Consumer Proposals
Consumer proposals help settle the unsecured debt through a legal process, so you can start fresh. Creditor-accepted proposals allow you to avoid bankruptcy and keep your assets while getting protection from your creditors. No more phone calls! Interest stops accruing on money owed and payments to creditors are designed to fit your budget. You can also prepay your proposal at any time without penalty.
Some Major Advantages:
Proposals are binding. A proposal approved by the majority of creditors is binding on all of them — even the ones who vote against the proposal or opt-out of the process.
Proposals offer more money to creditors than bankruptcy. It’s in the creditors’ best interests to vote for this solution.
Proposals have fewer reporting requirements. There are no reporting obligations required during the term of the proposal unless you decide to include them as a term of your proposal.
Proposals are predictable. You’re able to determine how much you can pay monthly within the restrictions of your budget — and additional new income will not cause your payments to increase. You can choose to pay down your proposal quickly, shortening the term of the proposal, if you are able.
Proposals only affect your credit bureau for 3 years after completion and we work with you on understanding how to repair your credit rating so you can have an improved rating in less time.
Upon successfully making all payments and attending 2 counseling sessions your debts will be legally written off — subject to a few restrictions — letting you build your financial future once again.
When trying to identify whether you are dealing with a licensed professional who can provide these services check the Government of Canada’s website to see that they are listed.