If you are losing sleep worrying about your debts, you may want to consider a consumer proposal.
The following consumer proposal information for Canadians will help you decide if this bankruptcy alternative may be right for you.
Consumer proposal Basics
A consumer proposal is a legally binding agreement between you and your creditors that allows you to settle your debts for portion of what you actually owe. A bankruptcy trustee works with you to draft the proposal, which must be approved by the majority of your creditors.
Consumer proposal advantages
As you read about consumer proposal information for Canadians, you may notice a number of advantages to consumer proposals. These include:
- Collection activities (including phone calls and wage garnishment) immediately stop
- You will not lose your home or assets
- You still repay a portion of your debts to your creditors, fulfilling most of your financial obligations
- Interest on your debts stops accumulating
Consumer Proposals can only be filed by a Trustee in Bankruptcy and do have advantages compared to a debt consolidation or credit counselling program.
A bankruptcy trustee can help you and their initial consultation is free.
More Personal Bankruptcy Canada Consumer Proposal Articles.
Consumer Proposal FAQ
- What is a Consumer Proposal
- Consumer Proposal and Your Credit Rating
- Consumer Proposal vs. Bankruptcy
Other Consumer Proposal Resources
- Consumer Proposal Info from the Office of the Superintendent of Bankruptcy
- Wikipedia Consumer Proposals