The major difference between a consumer proposal and a bankruptcy is what happens to people’s assets, especially those who own their own home.
Even when faced with the likelihood of having to do a bankruptcy or a consumer proposal, most people who own their own place would prefer not to lose it. It’s fair to say that in a consumer proposal you only give up your assets if you want to. The thing is, in a consumer proposal you will be offering your creditors money, usually through a monthly payment plan, to compensate them in a better way than a bankruptcy. Your assets will remain “off the table”, so to speak.
For instance, if someone owns a house which has some equity in it, they may be well advised to offer their unsecured creditors a reasonable proposal so that they don’t risk losing their house by being sued by those unsecured creditors. Often a consumer proposal is the absolutely best way to ensure that you can keep your home.
Even when you have enough income to make your mortgage payments, if you can’t also keep your credit cards and other unsecured debt payments up to date, those creditors will eventually take legal action against you. If they are successful and get a judgment against you, they would be able to use that judgment to eventually seize your property in order get their money.
When you file a consumer proposal with Richard Killen & Associates, it will prevent that from happening. It will allow you to make a new deal with those unsecured creditors so that, even though it may not pay them back completely, it will work better for both the creditors and for you. And it will save your house.
What such a deal would consist of depends on a lot of different factors which we can’t enumerate here, but that’s what you go to Richard Killen & Associates for. Remember the consultation is absolutely free.
Richard Killen, CIRP