A consumer proposal will enable you to offer a monthly repayment to your creditors over a period of up to 5 years based on your budget (income left after expenses).

The total of the monthly payments represents the amount of your consumer proposal.

Benefits for Consumer Proposal

  • Enables you to make a single monthly payment to your creditors
  • Freezes the interest that you’re accumulating on your debt
  • In most cases will reduce the amount of money that you owe
  • Will stop any collection/enforcement action being taken against you like wage garnishments
  • Does not involve an ongoing reporting obligation as is the case in Bankruptcy
  • Once accepted can be paid in full at any time – if you come into a lump sum of money you can pay it off early which will enable you to start rebuilding your credit sooner.

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Case Study

  1. Johnny and Sarah have one child and owe $40,000 in credit card debt with monthly payments that total $1,000.00 per/mo.
  2. Their monthly household income is $4,000.  After their living expenses they are left with $300 per month, leaving them short $700 each month when the bills come in.
  3. Offering a proposal to their creditors of $18,000 in total,  means that they will pay $300 per month for 5 years.

Through the consumer proposal Johnny and Sarah:

  • Stop the interest from accumulating on their credit
  • Are able to make a monthly payment to their creditors that they can afford
  • Will reduce their debt by $22,000

The Consumer Proposal Process

Step One – we will work with you to come up with a consumer proposal that is likely to be accepted by your creditors and proposes terms you can live with

Step Two – we will file the proposal with your creditors

Step Three – if your creditors and the Court accept the consumer proposal you will begin making a monthly payment to us which we will then be dispersed to your creditors

Finally, consumer proposals can only be arranged through a Licensed Insolvency Trustee.

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