Are you overwhelmed with debt and looking for a solution to your money problems? If you’re in Windsor a Consumer Proposal may be the best option.
What is a Consumer Proposal?
A Consumer Proposal is a legal agreement between you and your creditors to pay back a portion of what you owe over a period of up to five years. This amount would be in exchange for the complete settlement of your unsecured debt.
What type of debt is covered in a Consumer Proposal?
The types of debt covered in a proposal include credit card debt, payday loans, tax debt, certain student loans (those over seven years old), and other unsecured debt.
Why should I consider a Windsor Consumer Proposal?
Here are 14 reasons you might wish to consider filing a Consumer Proposal:
#1. You don’t have to file for bankruptcy. A Consumer Proposal is an alternative to bankruptcy.
#2. You pay back less than what you owe. You pay back as much as 70% less than what you actually owe on your unsecured debt.
#3. You stop accumulating interest. You freeze interest from accruing on your unsecured debt.
#4. You get to keep your assets. You don’t have to give up your home, car, and RRSPs. So if you can pay your mortgage, you can keep your home. If you can pay your car loan, you can keep your car.
Contrast this to bankruptcy, where you are required to surrender those assets that do not fall within the bankruptcy exemption exceptions for your jurisdiction (such as a car over a certain dollar value amount).
#5. You consolidate your unsecured debt. You consolidate your unsecured debts into one monthly payment you can actually afford. This way, you avoid having to manage multiple payments to various creditors.
#6. You pay one monthly fixed fee. The monthly payment is fixed during the life of the proposal. So if you get a raise or come into a windfall of money – such as a tax refund – you get to keep it. In a bankruptcy, you need to make a monthly reporting and must make extra payments toward the bankruptcy if you have surplus income.
#7. You can shorten your Consumer Proposal. You can reduce the length of your proposal by making extra payments into it. This will help you complete the proposal faster so that you can get started on rebuilding your credit once it’s complete.
#8. You get relief from your unsecured debt. You finally put an end to your unsecured debt and can look forward to being debt-free within 5 years or sooner.
#9. Your creditors can’t come after you. You stop any collection calls, lawsuits, and wage garnishments or other actions by unsecured creditors against you to recover on what you owe them. Once you file a proposal, an automatic stay of proceedings takes effect. This stay prevents unsecured creditors from going after you to collect on that debt.
#10. Your creditors are bound by the proposal. Your creditors are legally bound to the terms of the proposal. They can’t change their minds after it’s accepted and come after you for the debt you owe.
#11. A Consumer Proposal is free. You aren’t charged a proposal filing fee upfront. You work with a Licensed Insolvency Trustee (LIT) – the only professional authorized to assist Canadians with filing proposals and bankruptcies. The LIT gets paid a government-mandated amount out of the monthly payment you make, that would typically go toward your creditors. The LIT is also paid a percentage of your payment, but again, this is money that would have gone to your creditors.
#12. You get the help you need from knowledgeable and trusted financial advisors. LITs are federally licensed and regulated and have the education and credentials required to assist you best. Through years of experience, LITs have also seen nearly every financial situation and have negotiated with many creditors. They know what a creditor is likely to accept when it comes to debt settlement. In fact, many creditors refuse to negotiate debt with anyone other than an LIT.
#13. You get help that’s in your best interests. LITs are impartial and do not take sides when negotiating the monthly amount you’ll end up paying. They need to find a number that you can afford, and one that your creditors will likely accept.
#14. You learn how to better manage your finances. As part of your proposal, you’ll be required to attend two credit counselling sessions. This helps to arm you with the knowledge and tools you need to help you organize your finances in way that will lead you to better financial health.
How do I file a Consumer Proposal in Windsor, Ontario?
Licensed Insolvency Trustees are the only professionals authorized to assist Canadians with filing Consumer Proposals or bankruptcies.
Your first step is to contact a Licensed Insolvency Trustee.
At your free initial consultation, your LIT will review your financial circumstances and provide you with every debt relief option available – as well as their pros and cons. You will also receive advice from the LIT as to which might be the best solution for you and your family.
It’s also important to note that LITs can assist you with a wide range of debt relief options, from simple budgeting all the way to bankruptcy.
When should I get help?
People typically take action to deal with their debt only when they can no longer put up with the stress of being severely indebted.
The truth is, if you are experiencing any level of financial struggle, you should get help immediately. The sooner you reach out, the more options you may have. Nipping a financial problem in the bud early on, when it’s just a seedling, is far easier than uprooting a fully grown tree.
But no matter where you are when it comes to your debt troubles, you should be aware that you have options to deal with your debt. You deserve to live free from the stress and anxiety of mounting bills and overwhelming debt. There is something you can do about it.
As seasoned Licensed Insolvency Trustees, Adamson & Associates Inc. want to see you succeed in your mission to becoming debt-free. At your free initial consultation, we will make a comprehensive review of your financial circumstances and advise you of every debt relief option available to you.
We treat people with dignity and respect, and you will never be judged. If you wish to speak to someone in Windsor who cares about your financial future, contact us at (519) 971-8519 and let us help you WITH THE ANSWERS YOU NEED.