Help With a Consumer Proposal
A consumer proposal is an important tool available for those who have creditors who are seeking to collect on debts. At its most basic, a consumer proposal allows you to make an offer to creditors to pay off your debt, but with more favorable and reasonable terms for you. If you want to reduce your interest payments, reduce what you owe, or extend the time you have to pay off debts, here is the information you need to know about consumer proposals.
Is A Consumer Proposal Right For You?
Consumer proposals aren’t appropriate for everyone. If you owe less than $1,000 or more than $250,000, you are likely not eligible for a consumer proposal. However, there are certain debt exclusions, such as mortgage debt, that don’t count towards these thresholds. Speaking with an experienced licensed insolvency trustee can help you better understand if a consumer proposal fits your needs.
What Is A Consumer Proposal?
A consumer proposal is considered a formal offer to your creditors. You want to pay off your debt, but you need your creditors to help you before the debt grows unmanageable.
A licensed insolvency trustee will examine your financial situation and offer your creditors your proposal. This proposal may request the creditors to extend how much time you have to pay off the debt or offer them only a certain percentage of the debts owed. You may also request to reduce interest payments. Sometimes a proposal will request all of these actions be taken.
All payments to your creditors will occur through the licensed insolvency trustee, who will act as an intermediary. The trustee will then use this money to pay off what you owe.
Other Benefits of A Consumer Proposal
Stop Wage Garnishment & Lawsuits
Once you file a consumer proposal, your wages will stop being garnished and any lawsuits against you by creditors will halt. You will also likely be able to keep your assets under the terms of a consumer proposal.
Walk You Through Each Step of the Process
You will also be obligated to attend two government mandated financial counselling sessions and potentially attend meetings with your creditors. However, its important to know that as an experienced licensed insolvency trustee Dana MacRae will walk you through each step of the process of a consumer proposal in Ontario.
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