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Are you eligible for a consumer proposal?

consumer proposal eligibilityWhat is a Consumer Proposal

A Consumer Proposal is a legal agreement between you and your creditors to negotiate the repayment of the money you owe. You can ask for a reduction of the debt owed and a new prolonged payment plan.

In most cases creditors will work with you and make some concessions if you meet certain eligibility criteria.

To be eligible to file a Consumer Proposal you must:

  1. Be at least 18 years of age
  2. File as an individual.  Corporations cannot file consumer proposals.
  3. Not have any ongoing or unfinished previous proposals.
  4. Owe at least $1,000 to unsecured creditors but not more than $250,000 (this is excluding the mortgage or other debts secured on your principle residence)
  5. Have relatively stable income to continue to meet your financial obligations, including making the consumer proposal payments.
  6. Be insolvent. This means that your debts have to exceed your assets and your monthly income is not sufficient to cover your living expenses and service the existing debt effectively.
  7. File a consumer proposal through a Licensed Insolvency Trustee or a Consumer Proposal Administrator.
  8. Generate sufficient income to make the monthly consumer proposal payments.

If the above apply to your situation a consumer proposal may be a perfect solution for your debt problems.

Some of the benefits of consumer proposals:

  • You can negotiate to pay back only a portion of the debt you owe. When creating a proposal to your creditors, you can work with your Administrator/Trustee to negotiate payment terms to repay less than what you owe. Creditors will usually agree if it is more than what they would receive if you filed for bankruptcy.
  • Pay over 60 monthly installments. You can negotiate to pay off the new (settled) amount over 5 years.
  • Your monthly payment never increases. Even if your income increases or you come into money after filing a Consumer Proposal your monthly payment is set and will not increase.
  • Immediate stoppage of interest charges.
  • Collection calls from creditors stop.
  • All legal actions and claims against you are stopped. If your creditors have filed lawsuits or made legal claims or actions, all these activities will be stopped.
  • You can retain/keep all of your assets.
  • Less damaging to your credit than filing for bankruptcy. Comes off your credit report in a shorter amount of time and allows you to solve debt problems without going bankrupt.
  • The consumer proposal is free.

Getting started

The first step is giving us a call for your free consultation. We’ll go over any questions you may have and provide a recommendation on the best course of action for your particular situation.

This call is completely free with no-obligation. Get in touch today and take the first step to freedom from debt!

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Consumer Proposal Consultation - H

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