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Are you drowning in overwhelming debt? A consumer proposal could be a great alternative to get a lower debt settlement when you are unable to pay off your entire debt. Speaking with a debt expert can help you with what options are available, one being a Consumer Proposal and determine if this is suitable for your current financial situation. We will assist you in comprehending how you can file for a consumer proposal and what you need to know. As a result, you will be able to make a well-informed decision as you seek help to become debt-free. Contact EmpireOne Credit to find out if a consumer proposal is the best course of action for you.
What is a Consumer Proposal?
- A consumer proposal is a legally binding debt settlement between you and your creditors. The amount of debt you can realistically afford to repay is something you decide with the help of a debt expert. After that, a payment schedule would be discussed, along with the term that could last up to 5 years. You can reduce your debt by up to 80% and interest will stop immediately.
- Set up a free consultation with a debt expert at EmpireOne Credit so that your specific situation is analyzed to determine whether a consumer proposal (or another option) is the best decision for you. We will assess your financial status and outline the advantages and disadvantages of the many solutions that could be available in resolving your financial issues. If you choose to file a consumer proposal, we will help to assist you to create a plan that works for you.
Why File for a Consumer Proposal?
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A consumer proposal is often filed as an alternative to bankruptcy. It's a legally binding process governed by the Bankruptcy and Insolvency Act, and it allows individuals facing financial hardship to have some debt relief without the severe impacts of bankruptcy. Unlike bankruptcy, which can significantly harm an individual's credit, a consumer proposal can be a less damaging solution, providing a way to pay creditors a portion of what's owed or extending the pay-off time, and stopping all interest.
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One of the appealing aspects of a consumer proposal is that it often enables individuals to retain their assets. In a bankruptcy scenario, assets may need to be sold to repay the equity you may have. However, under a consumer proposal, individuals can typically keep their assets, provided they are up to date on payments and able to maintain the agreed-upon proposal payments. This element can make a consumer proposal a more attractive option for those who are eager to protect valuable assets, such as a home or car, from being sold to cover their debts.
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Filing a consumer proposal offers a reprieve from collection efforts from creditors. Once the proposal is filed, it stops any current or future legal actions from creditors trying to recover their debts. This includes stopping wage garnishments, which can provide significant relief for individuals trying to regain their financial footing. The peace from constant collection calls and the threat of legal action can help individuals focus on their path to financial recovery.
What are the Benefits of Filing for a Consumer Proposal?
A consumer proposal, is one of the best alternative to bankruptcy, offers significant advantages over other debt relief options:
- Get out of debt faster by cutting your debts by up to 80%
- In 3 to 5 years, your debt will be paid off and accounts are closed
- Keep all your assets, including any home equity
- Merge your debts into one manageable monthly payment
- Stop paying interest immediately
- Put an end to collection calls
- Put an end to lawsuits and legal action
- Put an end to wage garnishments
- Your payment terms are fixed once they've been agreed upon
- You avoid bankruptcy
Can I really Keep My Assets With a Consumer Proposal?
A consumer proposal is a preferred method of debt relief in Canada since it allows you to maintain the majority of your assets. This includes personal belongings, real estate holdings, a car, and RRSPs (aside from contributions made in the last 12 months). Anyone in Ontario who has equity in their home, owns a new or additional vehicle, or wants to keep their assets can benefit greatly from a consumer proposal because of this. The only requirement for homes and cars is that you must keep up your regular mortgage or car loan payments. This makes submitting a consumer proposal preferable to the limitations attached to filing for bankruptcy.
How Do You Meet the Requirements For a Consumer Proposal?
Before submitting a consumer proposal, you must be eligible by fulfilling certain requirements.
- You are insolvent. This indicates that either you are unable to make your debt payments on time or that your debts are worth more than your assets or income.
- You are unable to pay off all of your debt because it is too large for you to manage.
- You can only afford to pay back a portion of the money owing.
- Your total unsecured debt exceeds $3,900 but falls below $250,000 (excluding the mortgage).
- You live in Canada
How to File for a Consumer Proposal in Ontario with EmpireOne Credit Assistance
- You will need to speak with a debt expert at EmpireOne Credit in a free consultation, we have years of experience assisting Canadians with debt relief that is tailored to their financial situation. We will analyze your financial situation and work with you to determine what debt relief option is suitable for you. Your peace of mind can be restored, and you can start a journey toward financial freedom.
- Get in touch with us to get a FREE consultation and start your journey towards financial freedom. Call us at (416) 900-2324. Debt-free feels good!
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