- The consumer proposal offers a legal solution for Canadians who are struggling to manage their current debts.
- When you are unable to settle your excess debt but can afford a partial repayment, then a consumer proposal may be what you need to reach a new financial status.
- With the assistance of a certified proposal administrator, you can create an affordable repayment plan. This will be issued to your creditors. Upon acceptance of the proposal, you and your creditors will be bound by the terms for your unsecured debts.
- It creates an added layer of financial protection against creditor harassment while providing creditors peace of mind, debts owed will be settled.
With a Consumer Proposal You Only Need to Repay a Percentage of Your Debts
What a Consumer Proposal Offers
The consumer proposal is the affordable alternative to filing as bankrupt.
While the process must be carefully considered, it is best for those who find themselves in financial difficulty. To proceed with a consumer proposal, you must declare yourself as insolvent.
As a CP requires the repayment of a percentage of your debts, it means that you only have to pay for a portion of your current debts to your creditors. In many cases, Canadian’s will only have to pay back roughly 20% of what they owe to their creditors, writing off 80%.
in many cases people only have to pay back 20% of what they owe writing off 80%
The Truth About Consumer Proposals
It is reported that up to 125,266 Canadians in the year 2018 alone, had made the decision to file a consumer proposal. As awareness in consumer proposals is on the rise, it is becoming more accessible to those who need it.
Many people have found that the consumer proposal helps prevent against bankruptcy.
To learn more about the consumer proposal, it is best discussed with your Licensed Insolvency Trustee or LIT. It is risk free and can provide the answers you need to live financially free.
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