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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What Responsibilities Do I have During a Consumer Proposal?



Consumer Proposals

One of the major advantages of a consumer proposal when compared to a bankruptcy is most people find the process to be less stressful. Today I am going to summarize the major duties that must be done in both a bankruptcy and a consumer proposal. In a bankruptcy your duties include: Providing monthly income and expense statements Attending  two credit counselling sessions Make the required payments to your trustee (This also includes making any required surplus payments)…


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John and Melissa’s Story



Consumer Proposals

Earlier in the week I had a couple come into my office for a free consultation here in Barrie Ontario, their names were John and Melissa (not their real names of course). They explained to me that John had been out of work for a year and a half due after cut backs at work. Over the year and a half John was collecting EI and Melissa was working as a RN at the hospital….


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Justin & Jessica. A Real Life Consumer Proposal Story.



Consumer Proposals

Sometimes the best way to determine why a consumer proposal is better than a bankruptcy is to give an example. I met a couple last week at our Vaughan office, I will not use their real names, so I will call this couple Justin and Jessica.  Jessica and Justin were in their 30’s and recently had some changes in their lives. Justin had been working at an automobile parts manufacturer and in the past had…


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A Consumer Proposal Can Help You Out of a Pay Day Loan Cycle



Consumer Proposals

  I met with someone in Vaughan the other day, I will him call Chris (not his real name). Chris unfortunately got into trouble with pay day loans. He was single and had a pretty good income, but with the high interest and administrative fees he was paying on these loans he was stuck, and he could not find a way to pay off the loans. Chris made about $1,600 bi-weekly. However, he had about…


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In a Consumer Proposal your Payment is Fixed



Consumer Proposals

A significant difference between a consumer proposal and a bankruptcy is that in a consumer proposal your payment is fixed. In a bankruptcy, this is not the case. In today’s blog post, I will explain why there is this difference. In a bankruptcy you are required to provide monthly statements which disclose your monthly income and expenses. A trustee uses these statements to calculate how much surplus will have to be paid to complete the…


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Will my Monthly Proposal Payments be Lower than in a Bankruptcy?



Consumer Proposals

When I meet with people in our Vaughan office, I help them evaluate their options. In many cases, they are surprised to find that based on their budget it is more affordable to opt for a consumer proposal rather than a bankruptcy. This is because your monthly payments are often lower in a consumer proposal. For example, I met with Linda (not her real name) in April. Linda was in her fifties and did not…


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