A Huntsville Consumer Proposal in Depth

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Consumer Proposals and Your Credit

Understand how Consumer Proposals impact your Credit in Huntsville

Generally, with the filing of bankruptcy or a consumer proposal, the rating agencies assign a very low to lowest credit score. It is no different in Huntsville. Information on your credit rating is removed after a certain period, depending on your data type and where you live. A consumer proposal remains on your record for several years following the time it gets paid off.

Obtaining Credit in Huntsville after a Consumer Proposal

 

Your ability to secure credit in Huntsville relies upon your ability to convince a lender that you are a reasonable credit risk, despite the consumer proposal setback. There is no obligation on the part of a lender to extend credit to anyone.

After repaying the debt:

  • Send copies of the final documents to the significant credit-reporting services.
  • Be sure all the information has been documented accurately.
  • Keep copies of everything for future transactions too.

 

If you have had issues following a consumer proposal, please consult with our Huntsville office. For more information, contact us through this site, or call our offices for an appointment at (705) 990-4388. 

Debt inclusions in a consumer proposal

What are the debts included in a consumer proposal?

Generally, consumer proposals deal with unsecured debt that does not demand the security of an asset like a house or vehicle. These contain:

  • Credit Cards
  • Personal Loans
  • Lines Of Credit
  • Payday Loans
  • Income Tax
  • Some Student Loans

 

If this total debt is less than $250,000, you are qualified to file a consumer proposal. If you are inquisitive, contact our Woodstock Consumer Proposal trustee to discuss a Division 1 proposal if you do not entitle to a consumer proposal.

 

Secured Debts

Secured debts are guaranteed repayment by an asset, like a house or automobile, and are not a part of consumer proposals. If you file a consumer proposal, you can either continue to pay the secured creditor to retain title to the asset or stop those payments and surrender the asset. That means the bank, credit union, or any other financing agency takes possession of your asset and resells it to recover the loan.

Secured loans consist of vehicles secured by the car, truck, motorcycle, or recreational vehicle and mortgages guaranteed by the real estate. Even though the secured creditors are not involved in the agreement, they get notifications when you file a consumer proposal. You can adjust your consumer proposal amount if you do not wish to submit your asset.

Financial struggles need not be permanent. A consumer proposal is a chance for a fresh financial start in Woodstock, enabling you to restructure your repayment schedule and get you out of debt. Our counseling staff at Dana MacRae can present you with the options for repayment and help you decide the best course of action. 

Do not wait anymore. Contact us now to help resolve your financial issues. 

Contact our office for more detailed information about this process and your situation.

Pros and Cons of Consumer Proposals

 

What are the pros and cons of a consumer proposal?

Consumer proposals are government-authorized settlement programs for unsecured debts. A consumer proposal helps you to save assets from liquidation, is a bankruptcy alternative, and makes it more manageable to recover and rebuild credit. It is a form of negotiation with creditors.

 

Advantages of a consumer proposal

  • Deduction of unsecured debt by as much as 75%
  • Avoid bankruptcy
  • Consolidate debts into a single monthly payment of a fixed amount
  • Legally settle debts, including the Canada Revenue Agency (CRA)
  • Slight damage to your credit rating
  • Quicker and earlier financial recovery

 

Disadvantages of a consumer proposal

  • The exclusion of secured debt 
  • It impacts the credit rating through the debt write-offs
  • You will be considered a high-risk borrower
  • Exclusion of seven-year-old student loans 
  • It affects your overall financial structure.

 

Alternatives to a consumer proposal

If you do not have a regular, stable income; have large secured debts; or are not solvent, there are other options to consider:

  • Bankruptcy
  • Debt consolidation
  • Debt Counseling sessions

 

Our Huntsville office can also provide advice and counsel about these options. We will be delighted to examine your complete financial status and history and help you make the best judgment possible under the current circumstances. We train our discrete, non-judgmental staff to consider all options and discuss options with you. We are happy to set an appointment for you at your convenience without obligation or charge, or you can book an appointment through our website.

Call us at (705) 990-4388 to start your financial life afresh. 

 

Articles we prepared on Consumer Proposals in Huntsville

Bankruptcy vs. Consumer Proposal: The Impact on Tax Refunds

Bankruptcy vs. Consumer Proposal: The Impact on Tax Refunds

Navigating the path toward financial stability involves making informed decisions, and two significant options to consider are bankruptcy and consumer proposals. Both avenues provide a way out of debt and offer distinct asset management approaches. When it comes to...

Cancelling a Consumer Proposal: What You Need to Know

Cancelling a Consumer Proposal: What You Need to Know

Are you considering cancelling a consumer proposal? You may have changed your mind about pursuing debt relief through this method or want to explore other options. Whatever the reason, it's essential to understand the implications of cancelling a consumer proposal...

A Guide On Including Your Car In Your Consumer Proposal

A Guide On Including Your Car In Your Consumer Proposal

We frequently see customers with credit card debts and other unsecured debts like car loans. Many debtors own a car or truck when they file for bankruptcy. While the threat of bankruptcy is stark on its own, not having your own transport can derail your plans of...

Can I file a consumer proposal multiple times?

Can I file a consumer proposal multiple times?

In Canada, a consumer proposal is a judicial debt settlement agreed with creditors to reduce your debt, administered by a Licensed Insolvency Trustee. The consumer proposal must be paid within five years or less with the help of monthly payments. Being a great...

Applying for Credit during a Consumer Proposal

Applying for Credit during a Consumer Proposal

A Consumer Proposal is a legally binding choice to forgive the debt, in which you give back a portion of what you owe to your creditors without paying any interest. Only Licensed Insolvency Trustees (LITs) can administer Consumer Proposals, and they conduct any...

Does Consumer Proposal remain on Credit Report all the time

Does Consumer Proposal remain on Credit Report all the time

The consumer proposal might be an ideal way to overcome your debt, but it can damage your credit ratings. Your credit score is closely connected to your credit report since the report contains all your missed or late payments. However, it is deleted from your credit...

Filing a Consumer Proposal – Will I lose my home?

Filing a Consumer Proposal – Will I lose my home?

Filing for a consumer proposal can be an intelligent way to protect yourself from creditors and negotiate to pay off a portion of your debt. But have you ever thought about how a consumer proposal affects your home? What is a Consumer Proposal? A legally binding...

Role of a Licensed Insolvency Trustee in Canada

Role of a Licensed Insolvency Trustee in Canada

Selecting a debt advisor is a crucial step in your overall debt recovery. Licensed Insolvency Trustees (LIT) are Canada's only federally regulated debt advisors. The Licensed Insolvency Trustees outline your options and advise you on how to get out of debt and obtain...

We can help you determine whether a consumer proposal is right for you

A Consumer Proposal is your Chance
for a Fresh Start.

Call for a free and confidential consultation at

1-800-665-9965

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