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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Do Banks Like 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 Proposal Vs. Division I Proposal To Creditors



What is a consumer proposal? A proposal to creditors is a deal you negotiate with the people you owe money to in order to repay a portion (or perhaps all) of what you owe.  If you like legal terms, a proposal is an “arrangement” to “settle” your debts for less than their full amount. You might be asking yourself, “Why would anyone accept a deal for me to repay less than what I owe?”  That’s…


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When Is A Consumer Proposal Appropriate?



  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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Common Questions about Consumer Proposals in Canada



Consumer Proposal in Canada: A Quick Overview When filing a consumer proposal in Canada, you are offering a legal contract to your creditors to repay a portion of your debt over a period of up to 5 years. To get started, your consumer proposal administrator will gather information from you at the initial consultation meeting regarding your debts, as well as any assets that you have and what they are worth. These values are typically…


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25 Things You Must Know About Consumer Proposals



I’m finding that I meet with more people every day who have heard of consumer proposals, and are interested in them as an alternative to bankruptcy, but it seems many are not completely sure about what they are or how consumer proposals work. Here are 25 important facts about proposals: A consumer proposal is a legal arrangement, under the Bankruptcy and Insolvency Act, that can be made between you and your creditors. It will help reduce your debt load and improve your…


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How Are Canadians Getting Out of Debt



While the rate varies by province and year, more than 4 in every 1,000 Canadians get out of debt by filing insolvency each year in Canada. In 2013 alone, almost 123,000 people utilized the protection provided in the Bankruptcy & Insolvency Act to eliminate their debt and gain a new start. For many however, bankruptcy is not the final solution. In 2013 42% of insolvent debtors chose a consumer proposal as their debt relief solution….


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Avoid the Surplus Income Penalty with a Consumer Proposal



In a bankruptcy the amount of money you are required to pay is based on your income. Each month you are required to provide your trustee with copies of your pay stubs and proof of any other income. If you earn money above a certain threshold, you will be required to pay more into your bankruptcy. This is a government rule and it is called surplus income. In many regards it is a penalty because the more…


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