Peterborough Consumer Proposal F.A.Q
Frequently Asked Questions about Consumer Proposals in Peterborough
Consumer proposals are a top-rated and feasible debt relief solution in Peterborough. Like all other cities, a Licensed Insolvency Trustee (LIT) is the only individual qualified to file a consumer proposal in Peterborough. Make sure that you are dealing with a Licensed Insolvency Trustee (LIT), as there are parties out there proclaiming to do consumer proposals and demand a fee for gathering your information and then turning over your file to a Licensed Insolvency Trustee.
If I file a consumer proposal, will I lose everything in Peterborough?
No, you will not lose everything. If you still owe secured debt like a mortgage or car payment, you must maintain those payments to keep those assets. A consumer proposal protects your assets from unsecured creditors.
What debt is involved in a consumer proposal?
A: A consumer proposal involves any unsecured debt. That is any debt that does not have the backing of a physical asset, like a mortgage or car loan. It includes:-
- Credit Cards
- Personal Loans
- Payday Loans
- Income Taxes
- Lines of Credit
What are the fees for a consumer proposal at Peterborough?
The Licensed Insolvency Trustee receives a single monthly payment that includes all fees.
How does a consumer proposal affect my mortgage, car, and student loans?
A: Consumer proposals do not reduce mortgages or vehicle loans as these are secured debts with assets as collateral. If you cannot make those payments, the lender repossesses the asset for nonpayment. A student loan can be an inclusion if you have been out of school for more than seven years. If you file a consumer proposal for unsecured debt, you must continue to make a mortgage, and the lender repossesses car loan payments or those items. If you can hold the payments on your mortgage and vehicles, the consumer proposal does not affect them. Your LIT at Peterborough works with you to design a budget to accommodate all the monthly payments.
What are the terms of a consumer proposal?
If you file a consumer proposal for unsecured debt, you must continue to make the mortgage, and the lender will repossess car loan payments or those items. If you can maintain the payments on your mortgage and vehicles, the consumer proposal will not affect them. Your LIT works with you to create a budget to accommodate all the monthly payments.
What is the maximum duration of a consumer proposal in Peterborough?
A: A consumer proposal has a maximum duration of five years, but your financial circumstances determine its term.
What happens with my credit score when I file a consumer proposal at Peterborough?
Your credit score will be rated R7, which implies that you have made a settlement with your creditors. Upon completion of the proposal, the rating remains for three years.
Will my spouse be affected if I file a consumer proposal?
What about a co-signed loan?
What about my credit cards when I file a consumer proposal?
A: To file a consumer proposal, you must submit all credit cards to your LIT. You will be unable to apply for a new card while making the consumer proposal payments, except for a prepaid or secured card.
Will the collection agency calls stop?
Will the wage garnishments stop?
What happens if I cease making consumer proposal payments in Peterborough?
A: If you miss three payments, the consumer proposal becomes void, and you again are liable for all your debt.
What is the difference between a consumer proposal and bankruptcy?
- A consumer proposal has a debt limit of $250,000, whereas bankruptcy has no debt limit.
- With a consumer proposal, you pay a fixed amount each month to the LIT. But, bankruptcy payments vary depending on the “surplus income” each month.
- With a consumer proposal, you have a chance to keep assets. Bankruptcy involves selling some of your assets to repay debts.