Consumer Proposal is a Debt Remedy and is an alternative to Bankruptcy.

Although a Consumer Proposal is a debt remedy prescribed by the Bankruptcy & Insolvency Act, it is an alternative to Bankruptcy.  It is a negotiated settlement of a person’s unsecured debt on a no interest basis and, where appropriate, with debt forgiveness.  We analyze your financial situation using information that you provide which includes disclosure as to assets, a monthly budget, and a debt summary.  In a significant number of situations bankruptcy is not an appropriate option.  An offer of settlement is made to your unsecured creditors (credit cards, overdrafts, lines of credit, consolidation loans, income tax debt) which quite often involves repaying a percentage on the dollar through monthly payments over a maximum of five years.  The Trustee will monitor the creditors reaction to your offer and, if necessary, negotiate the Proposal.  A stay of proceedings is invoked on filing a Consumer Proposal wherein creditors are unable to pursue legal action or attempt to enforce collection on the debt.  The purpose of the stay of proceedings is to provide you with a great degree of relief and breathing space to allow you to regain control of your financial life.  Once a Consumer Proposal is filed legal actions stop, garnishments cease and your creditors deal with the Trustee not you.  This remedy is also protective of your assets in that your assets are separated from the general body of creditors and segregated in the Proposal itself.  Any secured debt against these assets is segregated as well.  In order to qualify for a Consumer Proposal remedy, your debt cannot exceed $250,000.00 after mortgages registered against your principal residence.  A Licensed Insolvency Trustee must assist you with this remedy.

Should you choose to file a Consumer Proposal, our goal is to assist you in regaining control of your finances and help you maintain financial stability.  Your Proposal payment must fit within your monthly budget which budget should significantly improve your lifestyle once your struggle with your debts has been alleviated.  As the lending community recognizes the difference between a Consumer Proposal and a personal Bankruptcy your credit rating is less detrimentally affected.  Do not hesitate to contact us should this remedy be of interest to you.