Consumer Proposals – The Solution For You?

What exactly is a consumer proposal , and could it be the right solution for you?

Nothing seems simple when you're dealing with money problems. It's important to know that help is available, and understanding your options is the best place to start.

Basically, a consumer proposal is a contract that's negotiated with your creditors on your behalf, by a consumer proposal administrator (also called a trustee). A legally binding agreement is put in place to arrange for a partial repayment of your total unsecured debt owing. You'll pay an arranged portion of what you owe, agree to a fixed term and interest rate.  Ultimately, your creditors will agree to ignore the balance owing and agree not to sue you, obtain garnishees or pursue any other legal procedures.

If you would like information about consumer proposals, your first step is to contact us and we will arrange an appointment with a debt expert.

He or she will discuss with you the benefits of submitting a proposal, your responsibilities, and determine if you could qualify.

There's no need to hesitate, as the longer it takes to get your file rolling your credit will continue to deteriorate, and you'll walk away with trusted advice from a professional the area of personal debt reduction.

Consider these 6 main benefits to a consumer proposal

• Most wage garnishments cease immediately
• Will not reflect on you as bad as a bankruptcy
• Interest may stop accumulating from the date you file
• Collection companies and creditors can no longer contact you for payment; it's the law!
• You are not in jeopardy of losing your house or other assets, as in bankruptcy
• You repay only a portion of your debt owing, with a maximum repayment period not exceeding 5 years

Here is what you need to know.

Typically the Trustee does not work for or represent you. Canada Credit Fix can assist you and your Trustee so that you can land back on your feet in the best possible credit position.  The Credit Counsellors and Trustees we work with will allow us to assist and advise you on matters involving your credit reconstruction leaving you in an improved credit situation once your Consumer Proposal is completed.

Bankruptcy

Bankruptcy is a legal process that can provide relief to honest but unfortunate debtors. When you are in bankruptcy, no unsecured creditor can garnishee your wages or initiate any other collection action against you.

However, bankruptcies generally do not affect the rights of secured creditors, i.e., those who have a valid security against your property, such as a car or a house.
A bankruptcy can be filed through a trustee in bankruptcy, an individual licensed by the Office of the Superintendent of Bankruptcy (OSB) to administer the bankruptcy process.
Note: Your own bankruptcy does not affect the liability of anyone who guaranteed or co-signed a loan on your behalf. Your spouse, for example, may be accountable for liabilities incurred jointly with you. It is, therefore, important to make the trustee aware of joint liabilities.

You need to know this!

Typically, filing bankruptcy in Canada is a very negative process and will leave you with bad credit.  We only recommend Bankruptcy and Insolvency are a last resort measure and will almost always try to help our members avoid bankruptcy as much as possible.

That being said; we encounter unfortunate situations where bankruptcy is simply the best option and our member may not have any other viable choices.  The good news is this: Not all bankruptcies in Canada are created equally and certainly not all Trustees are created equally.  In the event that your best option is to file a bankruptcy; Canada Credit Fix will work with you directly and your Trustee to insure you can be released and discharged as soon as possible. Canada Credit Fix will work with you and your credit report to insure that all errors and incorrect data is purged or removed during and after your bankruptcy.  Once you are legally allowed to obtain new credit, Canada Credit Fix will assist you with rebuilding responsible and affordable credit.  Canada Credit Fix will complete all required credit restoration and insure your discharge is filed properly to both Equifax and Transunion and insure that your credit score and credit rating are reflecting properly. 

Getting you through your bankruptcy faster and protecting your credit rights is exactly what Canada Credit Fix is all about.  Ask us to recommend one of our Bankruptcy Trustees in your province.