When Is A Consumer Proposal Appropriate?



Consumer Proposals

  When someone meets with a professional to get advice on which option is best to deal with their specific financial difficulties, it can become evident very quickly when filing bankruptcy is not the best choice.  At times, a consumer proposal is the more appropriate alternative.  To better understand when a consumer proposal might be a good debt solution for you, read the categories below to see if they apply to your personal situation. The High Income Earner…


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There Is No Cost To Your For Filing A Consumer Proposal



Consumer Proposals

Your monthly consumer proposal payment includes all fees and taxes.  You make one, all inclusive, payment, which is based on what you negotiate with your creditors. It is as simple as that. So how does the Trustee get paid? The government sets up a tariff allowing the Trustee or Consumer Proposal Administrator to be paid out of the funds collected for your creditors.  You don’t pay the Trustee any extra payments, no up-front fees either. …


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Consumer Proposal Can Solve Divorce Debt



Consumer Proposals

Divorce and a large amount of credit card debt often go hand in hand. Often the people involved are not prepared for the effect a divorce will have on them financially. Credit Card Debt Increases in Divorce There are two major factors in divorce that helps to increase the credit card debt considerably. The first is that the divorce process is expensive. Even if a divorce is amicable, you will require three or four hours…


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What to do When You Can’t Pay Your Credit Card Bills



Consumer Proposals

Do you try and avoid the mail when the credit card bills are due? Do you leave them unopened hoping they will disappear? Do you keep paying and paying and watching the balances go higher and higher? There are solutions to your credit card debts. Credit Card Solution #1: Consolidation Loan Especially if the interest rate is high on your credit card bills, talk to your banker about a consolidation loan. You may have to…


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What is the Difference Between a Secured and an Unsecured Debt



Consumer Proposals

There is often confusion between a secured and an unsecured debt. Creditors take for granted that everyone knows the difference.  However, that is not always the case. the distinction is important because only unsecured debts are included in a consumer proposal. Secured Debt Secured debt is a debt that you have pledged an asset to guarantee the payment of the debt. The most common examples are mortgages on real estate and car loans. With real…


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Consolidate Your Debts with a Consumer Proposal



Consumer Proposals

How often have you thought that if you consolidate your debts that it would be the solution to your financial problems? There are two methods of consolidation that most people know, getting a bank loan or getting additional mortgage financing. But if these are not possible, is there another solution? A consumer proposal is a good alternative for consolidating debts. Why Consolidate with a Consumer Proposal There are a number of reasons to consolidate through…


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What are the Qualifications for a Consumer Proposal



Consumer Proposals

One of the most frequent questions we get in e-mail or on the phone is “What are the qualifications for filing a consumer proposal?” Answering this question means we should consider whether or not they are technically eligible to file a consumer proposal and whether or not a proposal will be accepted. The top 5 considerations are as follows: Qualification 1: You must be insolvent. What this means is that you have more debts than assets. For…


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Consumer Proposal Stops CRA Garnishment



Consumer Proposals

Last week I met with Norman and he started the interview by saying that he had researched the matter and he knew that his only option was bankruptcy.  I told Norman that I would have to get some facts in order for us to assist with his problem. As we discussed what his assets were, and what the family income level was, a pattern has started to develop. Norman was a person who had accumulated…


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