Negotiate with Your Creditors & Avoid Bankruptcy
A consumer proposal is a contract that’s negotiated with your creditors on your behalf. A legal agreement is put in place to arrange for repayment of your unsecured debt. You’ll often only need to pay a portion of what you owe and a consumer proposal charges no interest.
Consider These Main Benefits:
- One manageable monthly payment, with the option to accelerate payments
- 0% interest on the payments
- Protect your assets – house, car and income
- Secured creditors remain outside this agreement and only unsecured creditors are addressed
- A single creditor can’t stop your proposal from being approved unless they have a voting majority
- All of your assets remain with you in a proposal
Once your consumer proposal is approved payments are made to the trustee who divides the payments amongst your creditors.
It is important to set an amount that is fair to the creditors and that is affordable to you. If you fall behind 3 payments in a consumer proposal it ends and you must deal with your creditors once again. However, you do not automatically become bankrupt.
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Take the first step to fixing your debt problems and contact us today for a free consultation.
