Welcome to Credit Solvency’s consumer proposal service page. If you are struggling to pay your debts, a consumer proposal may be the solution you need.
A consumer proposal is a legally binding agreement between you and your creditors to pay off a portion of your outstanding debts. This can provide you with relief from overwhelming debt and a fresh start financially.
Our team of experienced professionals will work with you to determine if a consumer proposal is a right option for you. We will help you understand the process and guide you through each step, from preparing your proposal to negotiating with your creditors.
Benefits of a consumer proposal include
- Reduced debt: A consumer proposal allows you to pay off a portion of your outstanding debts, providing relief from overwhelming debt.
- Stopped interest and collection action: Once your consumer proposal is accepted, interest on your outstanding debts will stop accruing and creditors will be prohibited from taking collection action against you.
- One affordable monthly payment: Instead of trying to manage multiple payments to multiple creditors, a consumer proposal allows you to make one affordable monthly payment.
- Protects your assets: In most cases, your assets, such as your home or car, will be protected under a consumer proposal.
If you are interested in learning more about our consumer proposal service, please contact us for a free consultation. Our team will be happy to answer any questions you may have and help you determine if a consumer proposal is the right solution for your financial situation.
How to repay a portion of what you owe without the impact of bankruptcy?
- A consumer proposal can help you avoid bankruptcy. If you are unable to pay your debts, bankruptcy may be the only option available to you. However, making a consumer proposal can allow you to avoid bankruptcy and keep control over your assets.
- A consumer proposal can help you reduce your debts. When you make a consumer proposal, you are offering to pay a portion of what you owe to your creditors. If your creditors agree to your proposal, you will only be required to pay a portion of your debts, which can help you reduce the amount you owe.
- A consumer proposal can help you get out of debt faster. When you make a consumer proposal, you are agreeing to a repayment plan that will allow you to pay off your debts within a certain period of time. This can help you get out of debt faster than you would if you were trying to pay off your debts on your own.
- A consumer proposal can help you avoid creditor harassment. When you make a consumer proposal, your creditors are legally required to stop harassing you for payment. This can provide some much-needed relief from creditor calls and letters.
- A consumer proposal can help you rebuild your credit. After you complete a consumer proposal, you will have a fresh start and the opportunity to rebuild your credit. With time and responsible financial management, you can improve your credit score and regain access to credit in the future.
What are the consumer Proposal Benefits?
A consumer proposal is a legal process in Canada that allows individuals who are unable to pay their debts to make an offer to their creditors to pay a portion of what they owe, in order to settle their debts and avoid bankruptcy. Some of the potential benefits of making a consumer proposal include the following:
- A consumer proposal can help you avoid bankruptcy. If you are unable to pay your debts, bankruptcy may be the only option available to you. However, making a consumer proposal can allow you to avoid bankruptcy and keep control over your assets.
- A consumer proposal can help you reduce your debts. When you make a consumer proposal, you are offering to pay a portion of what you owe to your creditors. If your creditors agree to your proposal, you will only be required to pay a portion of your debts, which can help you reduce the amount you owe.
- A consumer proposal can help you get out of debt faster. When you make a consumer proposal, you are agreeing to a repayment plan that will allow you to pay off your debts within a certain period of time. This can help you get out of debt faster than you would if you were trying to pay off your debts on your own.
- A consumer proposal can help you avoid creditor harassment. When you make a consumer proposal, your creditors are legally required to stop harassing you for payment. This can provide some much-needed relief from creditor calls and letters.
- A consumer proposal can help you rebuild your credit. After you complete a consumer proposal, you will have a fresh start and the opportunity to rebuild your credit. With time and responsible financial management, you can improve your credit score and regain access to credit in the future.
What’s important regarding consumer proposals and debt consolidation?
There are a few important things to consider when it comes to consumer proposals and debt consolidation:
- A consumer proposal is a legal process that allows individuals to make a repayment plan to their creditors to settle their debts. It is different from debt consolidation, which involves combining multiple debts into one loan or payment plan.
- A consumer proposal can provide a more structured and organized way to manage debts, as well as provide a lower interest rate and payment amount. It can also protect assets, such as a home or car, from being seized by creditors.
- Debt consolidation, on the other hand, can provide a lower interest rate and simplify the payment process by combining multiple debts into one monthly payment. However, it does not provide the same legal protection as a consumer proposal.
- It is important to carefully consider the pros and cons of each option and consult with a financial professional before making a decision. It may also be beneficial to seek advice from a Licensed Insolvency Trustee, who can provide guidance on the best option for a person’s specific financial situation.
Can I keep my vehicle if I file a consumer proposal?
Yes, you can keep your vehicle if you file a consumer proposal. However, you may be required to continue making payments on your vehicle as part of the terms of the proposal. It is important to discuss your specific situation with a licensed insolvency trustee to understand how a consumer proposal may affect your vehicle.
Can I keep my credit card if I file a consumer proposal?
Yes, you can keep your credit card if you file a consumer proposal. However, it is likely that the terms of your credit card agreement will change, and you may not be able to use the card for new purchases or to access credit. It is important to discuss your credit card situation with your consumer proposal administrator to understand how it may be affected.
Can I include my student loans in my consumer proposal?
Yes, you can include your student loans in a consumer proposal. However, it is important to note that student loans are not dischargeable through bankruptcy, so they will still need to be paid off even if you include them in a consumer proposal. It is best to consult with a licensed insolvency trustee to determine if including your student loans in a consumer proposal is the best option for your situation.
