Are you feeling overwhelmed by crushing credit card debt? You may be relieved to learn that you have more debt relief options than you are likely aware of. Bankruptcy may not be inevitable. You might wish to consider a Chatham/Ridgetown/Tilbury consumer proposal.
What is a consumer proposal?
A consumer proposal is the negotiation of your unsecured debt with your creditors.
Not only can you negotiate your debt down by up to 70% less than what you owe, but you’ll have up to five years to repay that debt.
What types of debt are covered in a consumer proposal?
Most unsecured debts are covered, including credit card debt, past due utilities, payday loans, tax debt, and even certain student loan debts.
Why is a consumer proposal better than other debt relief options?
Let’s see how a consumer proposal stacks up against other debt relief options.
Consumer Proposal vs. Bankruptcy
In a consumer proposal:
- You will not lose your home. Contrast this with a bankruptcy where you surrender your assets to your creditors in exchange for the elimination of your debts.
- The process is simpler. For example, in a bankruptcy you need to file monthly income statements detailing whether you may have had a windfall that particular month. There is no such obligation in a proposal. With a proposal, the fee you pay is determined up front and fixed for the duration of the proposal.
- Your monthly payment will stay the same, regardless of whether your income increases as a result of a promotion, new job, raise, tax refund, etc. In a bankruptcy, you need to file the aforementioned monthly income statement and account for any windfall. You may also need to pay more into your bankruptcy if you have such surplus income.
- You decide what you can afford based on your financial situation, and the terms are determined in accordance with this. It’s a proactive solution to get rid of your debt, not a last resort.
Consumer Proposal vs. Debt Consolidation Loan
In a consumer proposal:
- You may be able to reduce your debt by up to 70%. A debt consolidation loan is merely a new loan that allows you to repay your current unsecured creditors with one payment as opposed to having to pay multiple unsecured creditors at a time. But you still owe what you owe – you can’t negotiate it down.
- You receive legal protection from your unsecured creditors. This means that once you file a proposal, your creditors are stopped from enforcing collection actions against you, including wage garnishments.
- Your monthly payment will be affordable. Its terms are based on your financial situation and determined up front.
- It’s okay if your credit is damaged, you may still be eligible to file a proposal. For loan consolidations, on the other hand, you must be able to afford your payments and have good enough credit to get the consolidation loan in the first place. It may not be possible to do with damaged credit.
- You stop interest from accruing the minute you file, and there are no penalties involved so you can repay your debt quicker.
Consumer Proposal vs. Doing Nothing
Doing nothing is not an option if you’re experiencing financial distress. Your debt will only increase exponentially. A proposal, however, is one of the best ways to secure debt relief within five years – with an affordable, fixed monthly payment during its life. Once your proposal is complete, the debts included therein are ones that you will never be burdened with again.
How do I file a consumer proposal in Chatham/Ridgetown/Tilbury?
You must contact a Licensed Insolvency Trustee (LIT) to file a consumer proposal. These federally licensed and regulated professionals are considered the best financial advisors in Canada. They are licensed to assist you with a wide range of debt relief options – from simple budgeting assistance to loan consolidation to bankruptcy.
At your free initial consultation, your LIT will review your financial circumstances and advise you of each and every debt relief option available to you. You will even receive your LIT’s professional opinion as to the best solution for you and your family.
Why choose Adamson & Associates?
We have helped tens of thousands of Canadians just like you achieve the debt relief they seek. You don’t need to continue to live under the weight of crushing debt. You can do something about it. The sooner you call, the more options you may have available to you.
Call 519-310-John (5646) today to discuss a consumer proposal and if it is the right option for you.