Consumer Proposals Blog

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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What Happens When I File A Consumer Proposal?

A consumer proposal allows a person settle all their unsecured debts with their creditors for a fraction of what they owe. Often, settlements are for a third of the total debt owed and payment terms can extend to 60 months. It’s common to see a $30,000 debt with monthly payments of $600 or more to service, become a monthly payment of less than $200 to eliminate the debt through a proposal. It’s no surprise that…

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Consumer Proposal Annulment A Law, Not A Policy

A consumer proposal is a legally binding agreement between you and your creditors to settle your debt. Typically, the payments are scheduled as a monthly payment over a certain period of months. But what happens if you stop making payments? Your consumer proposal is annulled. The Bankruptcy and Insolvency Act is quite clear on what happens when payments are missed.  Section  66.31(1) states: …A consumer proposal is deemed to be annulled on (a) in the…

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What Is The Debt Limit In A Consumer Proposal?

A consumer proposal is a debt relief solution under the Bankruptcy & Insolvency Act available to individuals in Canada as an alternative to bankruptcy. There are, however, requirements and limits as to who is eligible to file a consumer proposal. First, a consumer proposal only applies to an individual, not a corporation. If you are a sole proprietor or unincorporated business, you can still file a one as long as your total debts are within…

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Do I Have to Surrender Any Assets in a Consumer Proposal?

One of the biggest concerns people have when facing financial difficulty is what happens to their assets. Often, when considering a consumer proposal, they will ask: “do I surrender or lose any assets?” This is a legitimate concern; the protection of our assets is essential for our future. People like to have a car, so they can get to work; a house they can call home; and retirement savings to use at a future date. No…

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How does a High Home Value Affect your Consumer Proposal?

Consumer proposals have become the preferred method for dealing with debt in Canada, yet there are still a lot of misconceptions regarding them. One commonly held belief is that if you own a home, you can’t file a proposal. In fact, for most people who own a home, a proposal is the better solution for dealing with debt. A key difference between consumer proposals and bankruptcy is how both proceedings deal with assets. In bankruptcy, all…

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Consumer Proposals are a part of the Bankruptcy & Insolvency Act

Do you need help with your debts but don’t want to file for bankruptcy? Have you considered a consumer proposal? It’s a good option for those with home equity or other assets they wish to protect. Moreover, it allows you to settle your debts for a fraction of what you owe while stopping interest and allowing you to pay in one convenient, monthly payment. Better yet, a consumer proposal offers immediate protection from your creditors…

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Can I Include Student Loans in A Consumer Proposal in Canada?

Yes!  But hold on, there’s a lot of different things you need to know. First, you should know that a consumer proposal is an option under the Bankruptcy & Insolvency Act  where, basically, you can offer to make a deal with your creditors. They can be really helpful ways to pay back part of the debt and get a fresh start, with the balance waived.  The reason I point out a consumer proposal is a proceeding…

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What is the Voting Period in a Consumer Proposal?

If you find that you are experiencing financial difficulty and you are struggling to pay your debts in a reasonable period of time but can afford to pay a consumer proposal is an option. In a proposal you make an offer to repay a portion of your debts and your creditors vote to accept or reject that offer. First you will meet with a licensed insolvency trustee to sign your documents. The trustee will file your…

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