Campbell River Bankruptcy, Consumer Proposal and Other Debt Solutions / All You Need to Know About a Campbell River Consumer Proposal
If you owe money, you may be surprised to learn that you have more than one option when it comes to getting debt relief. A Consumer Proposal is one of the most popular options. This powerful tool is an attractive alternative to Bankruptcy while still providing protection from debt collectors and freezing interest on your debt.
A Consumer Proposal is a Government approved debt relief program that allows you to pay back a portion of the total debt you owe to creditors. Working with a Licensed Insolvency Trustee (LIT), you can negotiate a legally binding agreement with your creditors to pay back part or all of your unsecured debt. In other words, you are able to make a deal.
If you’re in Campbell River or nearby and struggling with debt, keep reading to find out if a Consumer Proposal might be the right solution for you.
There are 2 requirements to qualify. You can apply if you meet both conditions:
Even though there are only 2 requirements to apply, whether a Consumer Proposal is the right option for you depends on your personal financial situation. The easiest way to find out what’s best for you is to book a free and confidential consultation with one of our Licensed Insolvency Trustees in Campbell River.
You must apply through a Licensed Insolvency Trustee (LIT). The LIT will file a Campbell River Consumer Proposal for you with the Government and submit it to your creditors.
As soon as your Consumer Proposal is registered with the Federal Government, you can stop making payments directly to your unsecured debt and your creditors must stop collecting from you. Your creditors will then have 45 days to accept or reject your proposal.
If your Consumer Proposal is accepted by your creditors, you will need to do several things in order to complete your Proposal. These include:
This may seem like a lot, but don’t worry. At Chase & Associates, we specialize in guiding you through this process and making it as stress free as possible. We will be there to help you every step of the way.
In general, Consumer Proposals are regularly approved when first filed. If it happens to get rejected, you have several options on how to proceed:
In this situation, your Licensed Insolvency Trustee will advise you about the best option.
One of the main advantages of a Consumer Proposal is that it can significantly reduce the amount of debt you have to pay to your creditors. On average, most individuals we help end up paying back 15-25% of their total unsecured debt.
The cost for filing it is included in the scheduled monthly payments and is set by the Federal Government.
Overall, what that means is that you will have one manageable monthly payment that covers your unsecured debt and the cost of your Trustee.
The repayment period typically lasts 4-5 years. But you have the flexibility to finish your payments as soon as possible to allow for a better credit rating. The maximum repayment length possible is just under 5 years. Often we see people make a lump sum payment or extra payments in order to finish sooner than scheduled.
Once you complete the conditions of your Consumer Proposal, you will receive a Certificate of Full Performance. This means that your remaining unsecured debts will be legally forgiven. At this point, your credit record will automatically update.
Most “unsecured” debts can be included. These are:
Secured debt, like car loans, are generally not included.
Overall, a Consumer Proposal is a less intrusive process than Bankruptcy and allows you to keep more control of your finances. Some of the main benefits include:
Consumer Proposals most often result in a win-win situation. You gain the debt help you were looking for and the creditors are happy because they recover some of their money.
Please don’t hesitate to reach out to us for a free consultation to discuss your specific financial situation and how a Consumer Proposal might help. This life-changing debt relief is available for YOU. Contact our office to arrange a free appointment by phone, online, or in person.