Consumer Proposals Blog

Build a 5-Year Debt Repayment Plan



If you find yourself only able to make the minimum payments on your credit cards or you’re using one loan to pay off another, it may be time to take action on your debt. The good news is you can build a 5-year debt repayment plan by filing a consumer proposal. We’ve detailed below exactly what you need to be doing for the next 5 years to accomplish your debt repayment goal. Make your debt-free…


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Debt Consultants Referring People to file Consumer Proposals



Debt consultants advertise that they can settle your debts for a fraction of what you owe, all while promising to stop collection calls and wage garnishments. What they don’t say is that they are advertising the exact same service that only a Licensed Insolvency Trustee can administer: a consumer proposal. A consumer proposal is a legal arrangement between you and your creditors where you agree to repay a portion of your debt. Although, the amount offered to…


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Consumer Proposal: 5 Things to Know



If you are thinking about filing a consumer proposal there are 5 things you should know. 1. A Consumer Proposal is Court Approved Once it is filed, collection actives against you stop and any wage garnishments stop (with limited exceptions such as child support). If you deal with your debt through other methods such as credit counselling or debt settlement, the creditors can still continue court actions. 2. A Bankruptcy Trustee Must Administer a Consumer…


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Negotiating A Successful Consumer Proposal



For a consumer proposal to be successful it must be acceptable to several parties. First you must be assured that you will be able to afford your monthly payments and that this is the best solution to eliminate your debts. Creditors are primarily looking at the total money they can expect to receive over the term of the proposal. They have certain ‘expectations’ and a successful plan takes these factors into consideration. Each person’s situation…


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4 Steps to a Home Run Consumer Proposal



If you’re considering a consumer proposal as a solution to an overwhelming debt problem, you want to make it a home run. You undoubtedly want the proposal to be accepted by your creditors, and to position yourself for a sound financial future. Here are my four key steps to a successful consumer proposal: 1. The Preparation Before all else, meet with a Licensed Insolvency Trustee for help. A Licensed Insolvency Trustee is the only person…


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DMP or Consumer Proposal? Compare The Payments.



Two very popular debt reduction programs available to Canadians include a debt management plan and a consumer proposal. While both involve negotiation with your creditors with the assistance of a third party (a trustee in the case of a consumer proposal and an accredited credit counselling agency for a debt management plan), a consumer proposal can provide more relief in terms of lower monthly payments in most situations. To help you compare the potential cost…


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Improve Your Credit Score by Filing a Consumer Proposal



You want to eliminate your debts by filing a consumer proposal, but you are afraid that your credit score will be harmed, and you will never be able to borrow again. Most of the people I meet with have that same worry. You are not alone.  Fortunately, I have some good news: In most cases a consumer proposal will improve your credit score. Here is an actual case history (with all identifying information changed): Joseph M….


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Consumer Proposal: A Great Way to Stop Collection Calls



A consumer proposal is a legal process administered by a Licensed Insolvency Trustee. It is a procedure available under the Bankruptcy and Insolvency Act which mean that, just like bankruptcy, a proposal provides legal protection from creditor actions. That means that a proposal is an effective way to stop collection calls and eliminate the debt that is causing those calls. The legal protection is called a ‘Stay of Proceedings’. This stay is effective as soon…


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Are All My Debts Included In A Consumer Proposal?



When you file a consumer proposal in Canada, you should always meet with a Licensed Insolvency Trustee (LIT). LIT’s are licensed by the federal government to act as administrators of consumer proposals and bankruptcies. They can properly assess your situation and let you know how each of your debts are treated in a consumer proposal. This article will explain which debts can be included in a consumer proposal and any limitations on what debts can…


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Five Tips For Negotiating With Creditors



Credit is when someone loans you money with the expectation that you’ll pay it back, and with interest. That’s an agreement that you make with your creditor when you sign up. The end goal for a creditor is to get paid. For the most part they’ll take full or partial payments depending on your situation. You can negotiate with your creditors, but it’s important to know the proper steps to do so. 1. Communication Communicate your…


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