Courtenay Bankruptcy, Consumer Proposal and Other Debt Solutions / 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.
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.
In order to qualify for a Courtenay Consumer Proposal you must meet the following criteria:
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:
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.
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.
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.
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.
There are many benefits to proceeding with this option to gain relief from your unsecured debts. Here are a few:
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!