Parksville Bankruptcy, Consumer Proposal and Other Debt Solutions / All You Need to Know About a Parksville Consumer Proposal

All You Need to Know About a Parksville Consumer Proposal

Parksville Consumer Proposal

What is a Consumer Proposal and How Can It Help Me?

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.

Do I qualify for a Consumer Proposal?

There are 2 requirements to qualify. You can apply if you meet both conditions:

  1. You live or do business in Canada; and
  2. Your debt is between $1,000 and $250,000, not including your mortgage on your main place of residence.

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.

What types of debts are included (and what is NOT included)?

Most “unsecured” debts can be included. These are:

  • Credit card debt
  • Lines of credit
  • Overdrafts
  • Canada Revenue Agency income tax debt
  • Canada Revenue Agency GST/HST debt
  • Student loans
  • Payday loans
  • Installment loans
  • Shortfall from a mortgage foreclosure

Secured debt, like car loans, are generally not included.

How Long Does It Take And What Will My Payments Look Like?

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.

What Are The Advantages of A Parksville Consumer Proposal?

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:

  • Zero interest on unsecured debt
  • Removal of most wage garnishment, including CRA garnishments.
  • Protection from debt collectors
  • It will pause active collection on student loan payments
  • It can help you avoid Bankruptcy
  • It has less of an effect on your credit score and will only stay on your record for 3 years after completion.

Who Can Help Me File A Consumer Proposal ?

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.

Find Out if a Consumer Proposal is the Right Choice for You

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.

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