A formal agreement between you and your creditors, known as a "consumer proposal", enables you to work out plans to pay off all or part of your debt at a lower interest rate over a maximum of five years. You won't have to give up any of your things, and only a percentage of your debt will need to be repaid if you decide to submit a search consumer proposal in Kamloops.
Creditors typically accept a consumer proposal because it enables them to recoup a larger debt than alternative debt relief strategies, such as bankruptcy. The fact that consumer proposals are a more amicable resolution for both the debtor and the creditor is why we see an increase in their filing in Canada.
An appeal from a customer will:
- suspend all interest payments as of the proposal's filing date;
- permit you to bargain to pay back only a portion of your debt;
- allow you to pay off your bills in three to five equal monthly instalments;
- halt all pay deductions and invasive calls from creditors;
- get rid of unsecured debts like credit cards, lines of credit, payday loans, and tax debt;
- permit you to keep your home and automobile as well as all of your possessions;
- Keep your regular monthly proposal payments the same as other prices or fees.
1- Do you qualify for a consumer proposal?
Starting with the competent advice of a Licensed Insolvency Trustee, you can overcome your debt problems. After analysing your particular financial position, your LIT will assist you through all available debt-relief alternatives, including bankruptcy, consumer proposals, debt consolidation, and credit counselling.
If, after careful consideration, you decide that a consumer proposal in Kamloops is the proper course of action for your position, your LIT will go over the procedure with you in detail and assist you in preparing the offer you would like to present to your secured creditors.
2- What are the benefits of a consumer proposal?
- Immediate release from wage garnishments and collection calls
- Payments that are set in stone and won't increase as your income does
- No need to submit monthly income or expense reports
- It lets you keep all or most of your assets.
3- After submitting a consumer proposition, what happens?
If your creditors approve your consumer proposal, you will make all payments that have been agreed upon within the proposal in the form of regular monthly payments (or lump sum payments) over a predetermined period. Attending two counselling sessions as part of your consumer proposal obligations will allow you to discuss budgeting and develop plans for improving your credit.
You will be freed from all unsecured debts you had as of the filing date once you have finished the counselling sessions and paid the consumer proposal in Kamloops in full.
Shane Taylor is the author of this article. To know more about Bankruptcy in Kelowna please visit our website: debtfreebc.ca
