When I meet with people in my Cambridge, Ontario office (on George Street in Galt), I always discuss a little known bankruptcy alternative called a consumer proposal.
A consumer proposal is a deal that we negotiate on your behalf with your creditors. Here's an example: I met with a person last month who had $25,000 in credit card debt. His hours were cut back at work, and now he is behind on his payments, and some of the credit cards have been turned over to a collection agency. He has a job and can make some payment each month, but he can't afford to pay what they are asking for; the high interest is just too much.
He knows he owes the money and he doesn't want to go bankrupt, but he doesn't make enough to qualify for a debt consolidation loan. The solution may be a consumer proposal.
In this case he offered a consumer proposal where he contributes $200 per month for the next three years; as the proposal administrator my firm, Hoyes Michalos & Associates Inc., takes the $200 and distributes it to the creditors, with the larger creditors getting a bigger share of the proceeds.
Since I file more consumer proposals in Cambridge each year than any other trustee, I am confident that his proposal will be accepted by the creditors. He will have one monthly payment to make, and he no longer has to worry about creditors garnisheeing his wages or calling him at home and at work.
A consumer proposal is not the solution for everyone, but for many people it is the best solution, so I encourage you to e-mail us or call us in Cambridge at 519-622-3773 or 310-PLAN so that we can review your situation and help you decide which option is best for you.
posted by J. Douglas Hoyes, CA, Trustee @ 8:41 PM
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