Have your stress levels reached a boiling point with your debt? Learn about a consumer proposal
You have debt and the payments have become unmanageable and your stress has reached a near boiling point. Now what? What do you do? Your answer is: Debt Restructuring. When you are looking for a debt management plan though, what are your options?
You have quite a few:
• File a consumer proposal
• Bankruptcy
• Informal Proposal
• Consolidation Loan
• Debt Management Plan
• Ignore the debt
Ok, that last one… I certainly do not recommend!
Debt Restructuring is how I help 90% of the time with clients looking to eliminate debt at my Burnaby 4 Pillars office. In this article I want to do a deeper dive on one debt restructuring option… filing a consumer proposal.
If structured correctly a Consumer Proposal can cut the debt by up to 80% so payments are as low as possible, paid over 5 years at zero percent interest. A Consumer Proposal frees up your cash so that money can then go towards more important things in your life such as food, savings, housing costs, retirement savings, your children’s education etc.
Here are the brass tacks of what a consumer proposal is and what the benefits are:
• At my 4 Pillars office in Burnaby we represent debtors to structure a consumer proposal on the terms that are most beneficial for the debtor not the creditors and to only pay a part of your debt instead of the full amount you owe
• A consumer proposal is filed with a Licensed Insolvency Trustee (LIT). A LIT is an officer of the court and has a fiduciary duty to the creditors.
• A consumer is entitled to their own professional representation through the process to ensure the proposal is structured on their terms, 4 Pillars solely represents the interests of the debtor.
• Once a proposal has been filed the interest stops and your payments are all at 0% interest
• You will be debt free five years or less
• A proposal is legally binding so harassing calls from creditors and wage garnishments cease
• Consumer proposals can include many types of unsecured debt such as credit cards, lines of credit, bank loans, and taxes
• Debts are restructured into one manageable monthly payment
Consumer proposals are a win-win solution for you and the creditors. They can recover some of the money that is owed to them, and you eliminate your debt.
A Consumer proposal is a good debt solution if you:
• Are carrying debt between $10,000 to $250,000 unsecured debt
• Have assets (e.g. car, house, RRSP) that you do not want to give up
• Want to stop the accumulating interest you are paying
• Want to repay your debts but just need time and a reasonable repayment plan
• Want to avoid bankruptcy
I strongly urge you to contact my Burnaby 4 Pillars office if you struggling with debt. I always take time to learn about a person’s unique financial situation and then explain all your options.
Our initial consultation is free, and there is no obligation. Most importantly you can be sure that you will be treated with respect, in a friendly and non-judgmental setting.
