Consumer Proposal

A consumer proposal is a formal process carried out by a trustee in bankruptcy. The trustee puts together an offer to pay creditors a percentage of what is owed over a specific period of time, or extend the time the debtor has to pay off the debt, or a combination of both. Payments are made to the creditors through the trustee. The debt must be paid off within five years. A consumer proposal can be submitted to creditors only if an individual's total debt does not exceed $250,000, not including debts secured by their principal residence.

Advantages:

Protects your assets.
May be a better option than bankruptcy.
Lower monthly payments.
Opportunity to start fresh.

Disadvantages:

Limited consumer education on financial literacy.
It is not free.
Must be done through a licensed Trustee in Bankruptcy.
Does have a negative impact on your credit score
Shows as R7 on your credit report.

Call (888) 213-8678 to speak with one of our trained credit counsellors at Consolidated Credit Counseling Services of Canada, Inc. for assistance in this area.

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