Advantages of a Consumer Proposal

Consumer Proposals Advantages

In a consumer proposal you keep all your assets, the debt is reduced to one lower monthly payment and you get out of debt in 3 to 5 years.

What are the Advantages to a Consumer Proposal?

The consumer proposal advantages include;

  • filing a consumer proposal avoids filing for bankruptcy
  • when approved the consumer proposal reduces your debt by up to 70%
  • no assets including homes, vehicles and personal possessions can be seized for sale
  • all interest is stopped, and no further interest can be added to the debt
  • if you have a steady job, most people will qualify
  • filing for a consumer proposal is less than filing for Bankruptcy

When your debts are more than you can manage and you have a steady job, a consumer proposal can be a wise choice.

In a Consumer Proposal;

Consumer proposals are straight forward for the consumer, the benefits far outweigh the risks of further debts and bankruptcy. The proposal protects you while paying off a fair amount to the credit card and other debts you may have, and;

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★★★★★ My paycheque had been garnisheed and the calls from collection agencies were non stop.  The office for Yanchdey was in town so I went and spoke to them.  We did a consumer proposal, the calls stopped and the garnishee was removed. Many thanks, Bernice Power Whitby.

Your Assets are Protected

Consumer proposals protect you from the people you owe money to, this is called “Creditor Protection”.

When a consumer proposal is filed with the courts, any creditors must stop any actions against you, including garnishments of your pay cheque.

As well while under a consumer proposal none of your assets can be seized including, homes, vehicles or personal property. Where a person files for bankruptcy personal property and assets can be seized and sold.

You Make One Lower Monthly Payment

Together with the proposal administrator a plan of action dealing with your debt is made specially for you.

The consumer proposal will set out a monthly payment that you can afford and live with, which is usually a percentage of the outstanding debts.

The is no further interest added to the debt and is usually paid off over a five (5) year period.

You Avoid Having to File for Bankruptcy

Avoiding filing for bankruptcy is important for most people. Filing for bankruptcy should be considered a last resort as bankruptcy can affect your credit and job for up to seven (7) years.

Bankruptcy can affect employment for professionals such as lawyers, accountants and people who deal with money or have business licensing or legal requirements regarding their personal solvency.

The Cost is Dramatically Less

The cost to file a consumer proposal is only the reduced monthly cost of the new loan. In a consumer proposal there are no up front fees payable by the debtor.  The only fee you pay are the payment made to the proposal administrator.

The proposal administrator is paid from a percentage of the amount being paid to the creditors, not you.

You Can Qualify for a Proposal Today

If you have a steady income and have between five thousand (5,000) and two hundred and fifty thousand dollars in unsecured debt then you can normally qualify for a consumer proposal.

Filing for a Consumer Proposal is Easy

A Consumer Proposal less complicated than a bankruptcy, making it easier for the consumer to navigate and complete.

The depth of regulation, the volume of mandatory documents and the level of legal complexity is higher in bankruptcy. Given that they are less restrictive, CPs can be managed and filed by a Consumer Proposal Administrator through a Licensed Insolvency Trustee firm. There are generally no court appearances required and no monthly reporting to the trustee.

Once your proposal is submitted to your creditors they have 45 days to agree to the terms and conditions. The creditors can choose to accept, decline or ask for a meeting of creditors. Your administrator or trustee could amend your initial proposal if the creditors do not agree to your terms.

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After the filing the consumer proposal, the trustee then contacts the creditors you owe.

The proposal administrator advises the creditors that you have filed a consumer proposal and will make the monthly reduced payments on your debts.

You make one reduced monthly payment to pay off all your debts in five (5) years or less!

★★★★★ It seemed to me that we owed everyone, and we were constantly harassed, finally I said to my wife that we had to get this mess cleared up.  I spoke to my bank manager who suggested I speak to YanchDey.

When I spoke to Jim Yanch he explained that we weren’t alone and he could help us to get our affairs in order.  I gave Jim all the information and he took care of everything for us.  We now have one monthly payment that is less than we paid before, the phone calls have stopped and we will be debt free in five years.  Great Service and Thanks, James May Whitby.

More About Consumer Proposals

The information provided within this website about the  consumer proposals advantages is protected by copyright law. Any distribution or reproduction in any way, shape, means or manner is expressly prohibited by law without the the prior written consent of the owner(s) of the copyright.

This site is for information only and is not meant to replace qualified legal advice by a Licensed Insolvency Trustee the writers shall not be held responsible for any information that may be incorrect or out of date in regards to consumer proposals. The owners of this website recommend that anyone wishing to learn about how a trustee can deal with your financial issues should contact our office.