Having many debt options out
there, it sometimes get confusing as which one to select. So, what is
the best way to decide whether a consumer proposal is right for you
or not?
The good news is that you do
not have to make a decision of your own. In your initial
consultation, a BDO Licensed Insolvency Trustee will analyse your
financial situation and will help you every possible way to eliminate
your debt. A consumer proposal somehow is the best way to help you
get out of the burden of your debt.
It will suit you best if:
- You have debts outstanding greater than $1000, but less than $250,000
- If you are unable to pay monthly payments and reducing the balance on your debt
- You have a time frame to become debt free
- You want to retain your house, car, etc. while repaying the debt amount
Need of Considering Consumer Proposal
With a consumer proposal, you
are able to pay off your debts without paying bankruptcy. In addition
to this, it also offers many protections and advantages that other
debt relief options don’t. Both, consumer proposal and bankruptcy
has one common advantage that is they both are legally bound. As you
file consumer proposal or bankruptcy, your creditor can’t take any
legal action against you as you get protected by the court. The good
part about consumer proposal is that it allows you to pay a portion
back of the debt that you owe, as proposed to the Debt Management
Plan.
Here are reasons why you need
to file consumer proposal:
- You make said monthly payment for the entire term of your proposal.
- Your assets stay with you.
- Once you file the proposal, you don’t have submitted any financial information or refund to your Trustee or give a tax credit.
Advantages of Consumer Proposal
Here are few advantages of consumer proposal that
you must consider:
- In this, you repay lesser amount than you owe.
- You can make one monthly payment that deals with all debt, which includes lines of credit, lines of credit and credit cards owing to the government.
- There will no collection calls, legal actions or wage garnishments.
- No need to file bankruptcy.
- It does not affect your ability to sponsor family or friends to immigrate to Canada.
- Offer a flexible payment term based on what you are capable of pay without interest.
- Better credit rating than if you get declared as bankrupt.
The basic requirement of this
proposal in that you need to have some amount in order to repay your
monthly payment and that your family income becomes stable.
Make your repayment easy
with this payment option
