How Is Cosigned Debt Treated In A Consumer Proposal?



Consumer Proposals

A common concern among my clients is how their cosigned debts will be treated in a consumer proposal. There’s a misconception that each person is responsible for half of the debt, when the reality is that each person is responsible for the full amount of the debt. That doesn’t mean that the lender or creditor can collect double the amount owed. It just means that the lender can collect the full amount from either party. Therefore…


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Do Banks Like Consumer Proposals?



Consumer Proposals

To understand how creditors, like your bank, view a consumer proposal, it’s important to understand exactly what a consumer proposal is and how it affects the money you owe them. Here’s the quick version: A consumer proposal is a federally regulated process to settle your debts for less than what you owe.  It will not change secured debts like a mortgage or car loan.  If you want to keep your house or car, you have…


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Consumer Proposals: Flexibility to Deal With Your Debt



One of the major benefits of a consumer proposal arrangement is that you have a lot of flexibility in crafting a repayment plan for your debts. While your creditors must accept the proposal, there are no ‘set rules’ on what you can and cannot do. Here is the story of how one couple solved a lot of issues by choosing a consumer proposal over bankruptcy. Steve had separated from his wife Krista about three years ago….


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Do You Need a Trustee to File a Consumer Proposal?



Consumer Proposals

Filing a consumer proposal has become a popular option for people who are unable to pay their debts in full.  And yes, you do require a licensed trustee to file a consumer proposal. It is always an option for you to informally propose some kind of compromise or settlement to a creditor on your own.  However, ceasing collections is voluntary and you are unlikely to receive that co-operation unless you can pay a significant portion of…


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