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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Filing A Lump Sum Consumer Proposal Can Be A Good Option



Consumer proposals can be offered in many ways.  The conventional way is to offer payments over a period of time, up to five years.  However, there’s little to restrict a bit of creativity in a consumer proposal. In fact, proposals to creditors can be offered in as little as one payment. Filing a consumer proposal as a lump sum can be a good option for someone who has access to some cash but not enough to…


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My Consumer Proposal Was Annulled: Now What?



  Here’s the bad news: if your consumer proposal is annulled, you’ve lost any protection from your creditors.  Their rights are re-instated and they can pursue you for your debts again. Here’s the good news: other than doing nothing, you have five options to still get relief from your debts and a fresh start. Don’t Panic.  You Still Have Options. 1. Revive the Proposal – If you can meet with your trustee within 30 days of the proposal…


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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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Should You Get A Loan To Pay Out Your Consumer Proposal?



It may be hard to believe, but there are companies that offer to loan you money to pay out your consumer proposal.  The rationale is simple: the sooner you pay off your consumer proposal, the sooner you can begin to rebuild your credit. There is some truth in that statement.  A consumer proposal remains on your Equifax credit report for three years after you finish the payments, so by paying it out early you get…


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Consumer Proposals: A “Made in Canada” Solution for Dealing With Debt



The consumer proposal is probably Canada’s best kept secret for dealing with overwhelming debt. Even better, a consumer proposal may be the tool that has the greatest capacity for good given our current economic environment. Today the biggest risk to the Canadian economy isn’t the high dollar, and it isn’t our level of productivity, and it isn’t high taxes or high government spending – it’s the state of our personal finances. After that controversial statement,…


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