WHAT ADVANTAGES DOES A CONSUMER PROPOSAL OFFER ME?
- 1. All collection actions are stopped when you file a Consumer Proposal and judgments, garnishees are suspended pending acceptance of your Proposal by your Creditors;
- 2. No interest is payable on your debts from the Proposal date forward, and this offers a huge saving;
- 3. You can make arrangements with your creditors to pay less than the full value or only a portion of your debts;
- 4. All unsecured debts can be included in a Consumer Proposal, and you are protected from all creditors, save and except maintenance, alimony, or debts arising out of fraud, misappropriation or criminal activity;
- 5. You can make your payments in a more manageable amount over a proposal period of up to five years;
- 6. You don’t lose your home or any assets you have pledged as security for your loans, as long as you make your payments on those secured debts;
- 7. You can surrender assets you can no longer afford to pay for, including a home or car, and include any balances or shortfalls owed on those assets in your Proposal.
THE IMPACT OF A CONSUMER PROPOSAL ON YOUR CREDIT IS LESS SEVERE WHEN COMPARED TO A BANKRUPTCY
If you have a good job with regular, stable income, and can make a regular recurring payment, but just can’t make full payments to your creditors, a Consumer Proposal may be perfect for you.
WHY WOULD YOUR CREDITORS ACCEPT A CONSUMER PROPOSAL THAT GIVES THEM LESS THAN WHAT YOU OWE THEM?
The objective of a Consumer Proposal is for you to offer something to your creditors which will result in them getting more than if you filed
for bankruptcy. Your creditors don’t want to take less then the full value of their loan or debt, but if your Proposal offers significantly more money than they will get in a bankruptcy, but still something less than full value of what you owe, creditors will be faced with a business decision. In most cases, creditors do not want you to go bankrupt, and will accept reasonable proposals.