Consumer Proposal: A Great Way to Stop Collection Calls



A consumer proposal is a legal process administered by a Licensed Insolvency Trustee. It is a procedure available under the Bankruptcy and Insolvency Act which mean that, just like bankruptcy, a proposal provides legal protection from creditor actions. That means that a proposal is an effective way to stop collection calls and eliminate the debt that is causing those calls. The legal protection is called a ‘Stay of Proceedings’. This stay is effective as soon…


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Beware Ads Advertising Government Debt Relief Programs



Have you seen any of the ads touting “Government of Canada Debt Relief Programs with promises to reduce your debt by 60, 70, even 80%?”  The businesses running these ads are trying to sell you “consulting services” – they’ve “been there before,” they know the “tricks of the trade,” they “know a guy…”  Please tell me you are not falling for any of this. The Government of Canada is not in the debt reduction business….


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Four Tricks to get CRA to Accept your Consumer Proposal



Will Canada Revenue Agency (CRA, formerly Revenue Canada) accept a consumer proposal? Yes, they will, but only if certain conditions are met. Today I’ll explain the four most important “tricks” or tests that you must meet for a successful consumer proposal when CRA (the Tax Man) is involved.  It’s important to understand that while creditors like credit card companies and banks will almost always accept a reasonable proposal, CRA has their own set of rules,…


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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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Consumer Proposal: Protect Your Assets



One of the biggest disadvantages to filing bankruptcy in Canada is that you may lose some of your assets.  For example, in a bankruptcy you lose your tax refunds, GST credits, and equity you have built up in your home.  Even worse, if your income increases while you are bankrupt, your payments may go up due to the surplus income rules. So how can you protect your income and your assets, but still deal with…


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Consumer proposal: better than bankruptcy if your income will increase



This article is the first in a series that will help you answer the question: “What’s better for me: a consumer proposal, or personal bankruptcy in Canada?” Of course the answer will be different for everyone, but it’s important to consider the differences between the two types of procedures.  One of the most significant differences is in income reporting. If you file bankruptcy in Canada, you are required to report your income to the trustee…


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