Many people come to our offices and think that bankruptcy is their only option. Depending on your situation, you may be surprised that you have several options to choose form. One of those options is a consumer proposal. Consumer proposals have many of the same benefits as bankruptcy, but with less of the downfalls.
Some of the notable benefits of a consumer proposal include:
Prevents creditor action including collection activity and wage garnishments
Avoids the stigma of a bankruptcy
Allows you to compromise (pay a portion acceptable to your creditors and yourself) your total debt
Stops all interest charges
Unfortunately, consumer proposals aren’t an option in every situation. You need to have a consistent source of income, and be able to make monthly payments (which are higher payments than if you decide to file bankruptcy).
If you meet with us and we decide together that a consumer proposal is the viable option you, it can benefit you in the following ways:
Your payments are set at the beginning of the proposal. If your income increases after your proposal is in place, the terms agreed upon in your proposal do not change. This is different than in a bankruptcy where you income is reviewed each month and so if you income goes up, you will have pay more and sometimes forced to stay in bankruptcy longer.
Your credit score will generally be less affected than it would be by filing bankruptcy.
The opportunity to repay a portion of your debt will increase your sense of control over your finances.
There is less social stigma when you are able to pay a portion of your debts back to the best of your ability.
So if you’re in debt and looking for a way out, book a free, no-obligation consultation with one of our trustees in SW Ontario. We will review all of your options with you and will decide together which option is best for you.
