Courtenay Consumer Proposal

As more and more Canadians from coast to coast look for relief from the high cost of living due to inflation, residents of the Comox Valley are no exception. What used to be a manageable debt load of credit card debt, payday loans, and lines of credit have now become a problem because it costs so much more to live. One way to fight back and gain relief from financial pressure is to consider filing a Courtenay Consumer Proposal.

What is a Consumer Proposal?

A Consumer Proposal is a debt settlement program implemented by the Government of Canada to help people find a fresh start with their finances. Much like a consolidation loan, a Canadian Consumer Proposal compresses all of your unsecured debts into one monthly payment payable over time.

The best part? You can most often make an offer to pay back a portion of what is owing over time. In other words, you can make a deal.

Who Qualifies for a Consumer Proposal?

In order to qualify for a Courtenay Consumer Proposal you must meet the following criteria:

• You must be a resident of Canada
• You must owe between $1,000 and $250,000 excluding the mortgage on your principle residence

Types of Debt that are Included

Most unsecured debts are included. Secured debts, such as mortgage and vehicle loans, continue to be paid directly to the lender. Here is a list of some different types of debts that can be included:

1. Credit cards with banks
2. Lines of credit
3. Instalment loans
4. Payday loans
5. Income taxes
6. GST/HST debt
7. Credit cards with non bank lenders

Of note, a Consumer Proposal is the only type of consumer debt proposal where the Canada Revenue Agency is allowed to accept a partial payment on the amount of taxes due.

How Do I Apply for a Consumer Proposal?

In order to apply, you must contact a Licensed Insolvency Trustee (LIT). Formerly known as a Trustee in Bankruptcy. An LIT is the only professional in Canada who is able to file a Consumer Proposal with the Federal Government.

At Chase & Associates, our Courtenay LITs offer a complimentary initial meeting so you can get a complete understanding on how this powerful and creative financial option might help you.

After our initial meeting, should you decide to proceed, there is an application form to be filled in which condenses the information needed to help us prepare your Consumer Proposal.

How Much Does it Cost?

The costs involved with filing a Consumer Proposal are regulated by the Government of Canada for the protection of the public.

The majority of Consumer Proposals that we file call for a monthly payment that stays the same over time. All payments made are deposited into our trust account which is audited by the Federal Government. Periodically, we distribute funds from that account to the unsecured creditors. With each distribution the Government allows us to keep a portion of the monies distributed.

Therefore, you end up with only one payment that covers off both your payment to your creditors and the cost to our office.

How Long Does it Take?

The process of starting a Consumer Proposal can happen very quickly. Once you send us your application form, or drop it off at our Courtenay location, we can have your documents ready to sign very quickly.

The next step is that your creditors have the opportunity to vote on whether they accept it. They have a 45 day window to vote and usually do so via email or fax directly to our office. The voting is conducted by a simple majority of dollars owed.

On the rare occasion where the votes are in majority against the Consumer Proposal, a counter offer is often presented.

Once approved, the payments must be completed within a 60 month time frame. However, as your financial health improves, you may wish to finish it faster than scheduled.

Here are the Benefits of a Courtenay Consumer Proposal

There are many benefits to proceeding with this option to gain relief from your unsecured debts. Here are a few:

• No interest on the debt
• One monthly payment that is designed to fit your budget
• Two financial counselling sessions with qualified counsellors
• Breaking the negative financial momentum that comes with carrying a debt load
• Better sleep and overall health that comes with reduced stress
• Better relationship with your significant other because financial stress will be reduced

Next Steps

If you would like to gain some financial freedom with the help of a Courtenay Consumer Proposal then the next step is to reach out to one of our convenient offices.  We will schedule a no cost initial appointment either via phone, on line, or in person where we will assess your situation and provide you with some feedback as to whether a Consumer Proposal is a good choice for YOU!