Parksville Bankruptcy, Consumer Proposal and Other Debt Solutions / All You Need to Know About a Parksville Consumer Proposal
If you live in the Parksville area you should know that a Consumer Proposal is one of Canada’s best solutions for dealing with debt. It is a Federally approved program that allows you to make a formal offer, or proposal, to your creditors.
This allows you to pay back, over time, a portion of the debt you owe in full satisfaction of the amount owing. In other words, you are able to make a deal. Here is all you need to know about a Parksville Consumer Proposal.
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 Parksville.
Most “unsecured” debts can be included. These are:
Secured debt, like car loans, are generally not included.
For most individuals the monthly payment is typically lower than the monthly payments that are required now to your creditors. Settlements of 20-30 cents on the dollar are not uncommon however every debt proposal is different. In the end, the ultimate settlement amount depends upon your income and what you own. Every proposal to creditors is unique.
Proposal payments are typically spread out over a period of 5 years (but can be completed sooner) and are interest free. In most cases, this can result in savings of as much as 70%-80%.
Your payment terms are based on a negotiation between what your creditors expect to receive and what you can afford to repay. Acting as a Consumer Proposal administrator, your Licensed Insolvency Trustee will meet with you to review your financial situation and help you determine how much to offer.
A consumer debt proposal is the only debt settlement program that is regulated by the Federal Government. This makes it a safer debt settlement solution than informal options through a debt consultant or credit consolidation company.
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:
This method of debt consolidation can only be made via a Licensed Insolvency Trustee (LIT). Over the past few years, this has become an increasingly popular way for Canadians to consolidate their unsecured debts. Payments to secured creditors, such as car loans or mortgages, often carry on as normal.
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.