Consumer proposals are legal applications where an insolvency trustee contacts your credit card company. The trustee tells the credit card company that you cannot afford the amount owing in credit card debt and that they have one of two choices;
- either they agree to reduce what you owe, or
- you’re considering filing for bankruptcy and they will receive nothing on the debt.
Credit card companies know that where a person files for bankruptcy, that as unsecured credit holders they will receive little on the debt. The credit card companies will normally concede and with our help reduce your debt.
Where you owed for example, 10,000 dollars or more, the debt would usually be dropped to around 3,000 dollars with monthly payments over 5 years or less.