Inhabitants of Halton Hills and neighboring areas often think of Georgetown consumer proposals from a licensed insolvency trustee as a means to address their debt reduction goals. The Bankruptcy & Insolvency Act includes two ways to deal with debt, one is personal bankruptcy and the other solution is a consumer proposal.
How does a Consumer Proposal work?
A proposal is an agreement deliberated with creditors through the aid of an official licensed insolvency trustee and authorized by the court. A proposal is a legally binding arrangement which will establish an immediate defense against creditors and debt collection businesses.
It is largely a debt compensation plan that depends on the debtors (the person in debt) financial resources. It might be a the full amount owed to creditors however typically it’s a fraction of that amount. Payment is usually made in one two methos: a one-lump sum or monthly installments.
Submitting an application for a proposal is actually not guaranteed as that all proposals have to be accepted by the majority of creditors and must also be approved by the court.
Consumer Proposals include several safeguards from creditors like:
- Wage Garnishments End Automatically
- Interest Will No Longer Accumulate
- Creditors and Collecting Companies Must Refrain from Calling You
Positive Side of A Consumer Proposal
Financial fixed assets, for example your house, are not susceptible and are not a part of the consumer proposal. The moment your proposal is accepted, the amount of money you pay will never go up even if your earnings increase. Additionally, you will never owe more than the approved amount. There is an unfavorable effect on your credit score however not like the lower score you could get with a personal bankruptcy.
Consumer proposals offer a variety of advantages to you and to your creditors as opposed to declaring individual bankruptcy.
We offer free-of-cost initial consultations and your first phone call to our firm could be the best stress minimizing phone call you will ever make.
Here at Richard Killen & Associates, our Georgetown Licensed Insolvency Trustee will analyze each of the alternate options available to you and offer you the guidance in selecting the most effective approach that can lower your debt.
Call us today for your free consultation at 1 (888) 545-5361. Our business offices can be found in 116 Guelph Street, Georgetown, Halton Hills, L7G 4A3. There’s free vehicle parking and we are conveniently located at Guelph & Maple.
Keep in mind, this might be one of the best stress minimizing telephone calls you will make.
To learn more about Georgetown consumer proposals along with insights on how a Licensed Insolvency Trustee can help alleviate financial stress, please contact our Georgetown office today at 1 (888) 545-5361 to get the debt relief you’ve been trying to find!