Consumer Proposals Blog

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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Tax Debts: How a Consumer Proposal Can Help



Do you have tax debts and wonder how you will ever get rid of them? Has the Canada Revenue Agency issued a requirement to pay to your employer or your bank? Is the interest on the taxes making it impossible to pay the debt down? Despite what many people believe, a consumer proposal can help with a tax problem. Tax Debts are Unsecured Debts Just like credit card debt and unsecured lines of credit, tax…


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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. Why would I consider filing a consumer proposal? In many cases it’s because you want to stop collection calls, keep your wages in full, and pay back a portion of your debts to your creditors over a set period of time. In Canada the number of people filing a consumer proposal to deal with their debts is almost on par with the number…


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Debt Settlement, Credit Counselling, Consumer Proposal, – Which One Is Right For You?



I’ve seen a lot on the news lately about debt settlement programs and companies that are out there offering services to help people settle debts for less than what they owe. There are so many people claiming to help cut your debt and they are not licensed to do so. The Government of Canada recently published a press release warning Canadians to be cautious of these “quick fix” traps. The only legislation in Canada that has…


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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 both a consumer proposal, and bankruptcy. This article will explain which debts can be included in a consumer proposal and how certain debts…


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Rise in Canadian Consumer Proposals



Canadian statistics just released by the Office of the Superintendent of Bankruptcy show that Canadian consumer insolvencies grew by 3.5% in 2016. In total, 125,878 consumers filed a bankruptcy or consumer proposal in Canada last year. Consumer proposals accounted for 49% of those insolvencies, which is up from 47% in 2015. Consumer proposals are nearly on par with personal bankruptcies. A consumer proposal is a legally binding agreement that you make with your creditors, where you…


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