Nanaimo Consumer Proposal

As we have progressed through the Covid 19 pandemic many large creditors have held back on their collection activity in order to give Canadians some financial relief. Creditors such as Canada Revenue Agency (Income Tax), student loans, and most of the major banks and credit card companies have either allowed for interest relief, the ability to skip payments or interest only payments during this time. In addition, they basically stopped collecting. Now that we are mostly through the pandemic (hopefully!), we have noticed creditors have started to collect again.

If you feel your debt load is too much to handle, the Government of Canada provides a way to consolidate your debts via a consumer debt proposal called a Consumer Proposal. If you are looking for a fresh start with your finances and wish to consolidate, a Nanaimo Consumer Proposal is an extremely good choice.

What is a Consumer Proposal?

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

A Consumer Proposal has several excellent features:

• One monthly payment designed to fit your budget
• Zero interest on the debt
• The ability to offer to repay a percentage on the dollar in full settlement
• Less stress leading to better health and relationships
• Two financial counsellings sessions to help you with your future

Who Qualifies for a Consumer Proposal?

In order to qualify for a Nanaimo 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

What Debts are Included?

Most unsecured debts are included. This would include debts such as:

1. Credit cards
2. Lines of credit
3. Instalment loans
4. Payday loans
5. Income taxes
6. ICBC debt
7. Student loans – with some exceptions, depending on your last day of studies

Pro Tip: 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.

Payments to secured creditors, such as a vehicle loan or a mortgage, continue to be paid to the lender.

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, a LIT is the only professional in Canada who is able to file a Consumer Proposal with the Federal Government. You can directly contact any LIT.

At Chase & Associates, our Nanaimo LITs offer a free 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. This is in stark contrast to dealing with a consultant who can charge you as much as they want.

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. There are no surprises.

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 Nanaimo location, we can have your documents ready to sign very quickly.

Your creditors then have the opportunity to vote on whether they accept it. They have a 45 day window to vote and usually do so via email 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.

If You Want to Proceed with Consumer Proposal in Nanaimo

If you would like to regain control of your finances with the help of a Nanaimo 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!