A Consumer Proposal is an alternative to bankruptcy.
In a consumer proposal a settlement is made with your creditors (the people you owe money to) that you can pay over a period of time.
The payment you’re required to make is one consolidated payment and you’re allowed a maximum of 5 years to make your payments over.
A Consumer Proposal is a legal procedure available to Canadian’s who are in financial difficulty but still have the ability to be able to pay back at least a portion of their debts.
To start the process of filing a proposal you’ll need to meet with a trustee who will first discuss with you all your available options. If a proposal is right for you, the trustee will help you to work out a payment plan that is suited for you and will then present that plan to your creditors.
If your proposal is accepted (and it does not need to be accepted by all your creditors – only a 51% majority is required), then it becomes a legally binding settlement on your unsecured debts.
A proposal is available if you can’t get help from lenders (such as a consolidation loan) and you can prove you’re insolvent (you can’t pay your bills on time).
As long as the proposal does not exceed a repayment term of 5 years, only your imagination restricts how creative you’d like the proposal to be during that time.
We have many ways in which you can find out more information regarding a Consumer Proposal.
- Contact me today by calling (519) 622 3773 or send me an email
- Visit out Consumer Proposal resource center at our main Hoyes Michalos & Associates inc website
- Visit our dedicated Consumer Proposal website
If you’re in a financial bind and are considering whether or not a Consumer Proposal is right for you, just imagine life with a few extra $’s in your back pocket at the end of each month and imagine not having to worry about annoying collection agent phone calls and threats of legal action.
We’ll happily discuss all your options with you and we’ll see if a Consumer Proposal is right for you.
