Often when I tell people about consumer proposals; that they can offer to pay their creditors only part of their debt, they are very skeptical. It seems too good to be true that just by paying what you can afford over a period of time, your debts will be erased. People often wonder, why would my creditors go for this? Especially if they have spent a lot of time harassing you with collection calls and perhaps even garnishing your wages. It seems the creditors would stop at nothing to get the money you owe, why would they now agree to take any less?

A well-designed proposal administered by a licensed bankruptcy trustee ensures that it is fair for both the debtor and the creditors. The fact is, creditors know when you are in financial trouble because you are not making your payments to them and when you approach them with a proposal they know that if they don’t accept it, you will probably need to file bankruptcy.

A consumer proposal offers the creditors more money than they would receive if you filed bankruptcy. So for them, it does not make good financial or common sense to refuse the proposal because they will end up getting far less money when you are forced to go bankrupt.
When you file a proposal here in Cambridge with a trustee from Hoyes, Michalos & Associates, we will make sure that you can afford it but that it is also fair and resonable to both you and the creditors. If the proposal is well-designed, the chances of the creditors accepting it are very high. The creditors do not want you to go bankrupt anymore than you want to.

A bankruptcy trustee can help you figure out what you can afford to give your creditors and if a proposal would be a good option for you. If you would like to set up a free-of-charge initial consultation to learn more about consumer proposals, please call the Cambridge office today at 519-622-3773 or send us an e-mail. We look forward to meeting with you!