Consumer Proposal advantages

Advantages of A Consumer Proposal

A Consumer Proposal is the best debt relief solution for those who want to end their stressful debt life. Bankruptcy is another option to pay off debt, but if you don’t like the idea of losing your house or any of your property for the sake of paying off debts, then a Consumer Proposal may be the key to your solution.

Why Should You File for this Proposal?

Consumer Proposal, under the Bankruptcy and Insolvency Act, is a formal, legal process and an important public record. This is an agreement between the creditor and debtor in terms of the debt payment. The debt payment will depend on the debtor’s income per month, but it substantially reduces the amount of debt to be paid with the creditors.

This legal process is composed of stages where a professional in this field will be working with you, making an initial assessment to determine an affordable payment plan. He or she will also be the one to file this legal document and negotiate with creditors if in case the proposal was rejected. Not to worry, it is rare that a consumer proposal will be rejected outright as creditors are usually willing to work with you.

Why opt for a debt relief option? Here are the advantages:

  • It reduces up to 70% of the total amount of debt to be paid.
  • This will be a suitable option if you fail to apply for a debt consolidation loan, or your debts are too high that it can’t qualify for a debt management program.
  • It will freeze your debt’s interests.
  • Debt relief option may be the best option for you to avoid filing for bankruptcy.
  • It helps you consolidate all of your debts into an affordable amount suitable for monthly payments.
  • All of your assets will be safe, even the equity in your home.
  • It legally binds all creditors, giving protection from wage garnishments and debt collection agencies.

There you have it, the advantages of choosing a consumer proposal over other debt solutions. Now that you are already enlightened with this process, it is the perfect time to seek professional help. Give our office a call today!

Meeting The Licensed Professional

Did you know that only a Licensed Insolvency Trustee Red Deer is the only professional recognized by the government to file consumer proposals?

Yes, indeed. Consumer proposals can be prepared and administered by a Licensed Red Deer  Insolvency Trustee or LIT. This professional will help you in terms of payment planning as well as negotiation with creditors. Once it has been filed, approved, and accepted, the consumer proposal is in effect and binding for both parties. This will grant you protection, preventing your creditors from collecting payments for the debt. So, all you have to do is to focus on the payment plan that your trustee has prepared and sooner rather than later, you will be living, debt-free!

debt free

What Should You Do Next?

Applying for a loan is never that easy; there is always struggle most, especially when it is time to make payments. Except if your creditor had made things easy for you to get approved fast. But on the other side, if you are a responsible debtor, you know that there ways that there options that will somehow make things lighter for you, especially monthly payments. If you wanted to learn more about consumer proposals. Don’t hesitate to contact one of our Licensed Insolvency Red Deer Trustees.