DOES A CONSUMER PROPOSAL MAKE SENSE FOR ME?

by Angela Marquis on January 26, 2011

I meet with many clients in Windsor, Chatham and Leamington on a weekly basis to discuss their options for a fresh start.  I am very surprised to learn from the majority of people I meet with that they have never heard of a Consumer Proposal. 

KEY ELEMENTS OF A CONSUMER PROPOSAL

It is a legal and binding agreement between yourself and your creditors to pay back, in most cases, a portion of what you owe. The one monthly payment can be made over any affordable time limit up to five years.  The funds paid to your proposal are distributed to everyone you owe on a pro rata basis.  Your debts are eliminated when you fulfill your proposal payments.

HOW DO I QUALIFY?

For an individual your unsecured debt must be under $250,000 and this excludes your mortgage if you have one.  Your debts must be greater than your assets, basically what you own. Also you must have the ability to afford and maintain the monthly payment plan.

ADVANTAGES OF A CONSUMER PROPOSAL

  • You can avoid filing Bankruptcy
  • Interest is stopped on the date it is filed
  • Legal actions started or threatened by creditors such as wage assignments, garnishments, registering a lien on property are stopped
  • Assets remain yours, for example house equity, owned vehicles and RESP’s
  • The proposal becomes legal and binding on all of your unsecured creditors if it is accepted by the majority of your dollar voting creditors
  • Consultations are always free
  • There is a “light at the end of the tunnel”
  • Our fees are paid through the administration of the file
  • NO HIDDEN FEES

Contact my office at 310-PLAN and book a no cost, no obligation meeting to review all of your possible options for a fresh start.  Don’t let the stress  cause you to loose any more sleep!!

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