Credit counselling, proposals to creditors, bankruptcy
Licensed Insolvency Trustee.

The Consumer Proposal

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Understanding Consumer Proposals

You have a great job, you have money coming in, but you’re having a hard time paying all of your debt back and paying it back on time. Is bankruptcy your only option?

The great news is there are other options. You should meet with a professional to know what options are out there to best deal with your creditors. Sometimes you need more than counselling to help restore your financial health.

Consumer Proposal

A Consumer Proposal is an option for those in debt to work with a Licenced Insolvency Trustee (LIT ) to negotiate a better personalized payment with your lenders. You should ensure you are working with a LIT as they are professionally certified, follow a professional code of ethics, and are properly trained.

The LIT works with you to create a proposal to creditors that is fair and reasonable to all parties. They’ll use your budget to tailor a plan and create payment arrangements that work for you, and most times have that broken down into equal payments over a period of time.

It’s Not Bankruptcy

Consumer Proposals have been increasing in popularity for several years.More people are choosing to settle debt using a Consumer Proposal instead of filing for bankruptcy.

Consumer Proposals are typically set up as payments over a period of time and can greatly reduce the overall amount of debt you must pay. The flexibility of a Consumer Proposal means that there is a range of terms that creditors may accept, which may benefit you as a consumer more than a bankruptcy would.

Sometimes, personal bankruptcy may be the best option for debt management. However, it is always best to meet and discuss your specific situation and needs in person before making a final decision.

Additional Benefits

If you have student loans or income tax as part of your debt load, your LIT will work with you on the best ways to manage this debt.

A proposal is accepted by all creditors if the majority of unsecured creditors accept it. And once accepted, your creditors are bound by it as long as you continue to make your payments.

A consumer proposal is a great option, but not the only option. Speaking to professionals about your situation is the best way to discover which path to financial wellness is appropriate for you. With free consultations, Rita Anderson & Associates is always available to help you make those first steps.