A consumer proposal in Ontario is an alternative to declaring bankruptcy and is one of the options to be considered through debt counseling in Ontario.

More and more individuals are considering proposals versus other options to obtain debt relief and protection from creditors and collection agencies.

What Is A Consumer Proposal?
In essence it is a legally binding process where a licensed bankruptcy trustee will help you develop a proposal to creditors. This offer may be to pay all outstanding debt or a percentage of debt owed to creditors.

It is important to note that only a licensed trustee in bankruptcy can file a consumer proposal.

Some of the benefits of a proposal are the same as with a bankruptcy. This includes:

  • Interest stops accumulating immediately.
  • Collection agencies and creditors stop calling immediately.
  • Wage garnishments if in play will stop in most cases.

The main advantages of a consumer proposal over a bankruptcy are:

  • Assets such as your house are not in jeopardy.
  • Surplus income is not a factor in the amount you repay.
  • The negative effect on your credit score is not as severe.

As you can see there are many advantages to a consumer proposal versus a bankruptcy. However these are not the only two options. Consolidation loans, informal arrangement and debt counseling and credit counseling should also be considered.

People do not set out to get into debt. Sometimes it is a result of unexpected expenses such as car repairs, medical bills, bad investments, gambling or being laid off and relying on credit cards as a temporary measure to stay on top of bills. You say to yourself when your financial situation improves, you will pay off your financial obligations.

However, you find yourself making minimum payments and your debt is growing each and every month. What was once a temporary solution has now turned into a way of life. Your credit cards are maxed out and your income falls short of your monthly commitments. You realize you can no longer borrow to solve your financial predicament and you are getting increasingly stressed out.

At Richard Killen and Associates we understand your situation. We help good people day in day out that find themselves in financial trouble and are seeking debt relief.

We encourage you to make a call to one of our offices. We can offer you debt counselling services and outline all your options to help you make an educated decision when it comes to debt relief. Your initial consultation is completely free.

This call will likely be the most stress relieving call you will ever make.

For debt counselling or more information on a consumer proposal in Ontario, please call one of our offices in the Greater Toronto Area.