For the residents of Cooksville, Port Credit and Mississauga, consumer proposals remain to be an effective solution to achieve personal debt reduction. Today, the Bankruptcy & Insolvency Act enumerates two good solutions if you have debt. The first is personal bankruptcy and the second solution is a proposal.
What exactly is a Consumer Proposal?A proposal is a contract negotiated with creditors through the help of a bankruptcy trustee or approved administrator and also authorized by the court. A proposal is a legally accepted arrangement which puts in place instant protection from financial institutions, credit card companies and other debt collectors.
In other words, a proposal is a repayment agreement that is dependent on your (the borrower) financial capability. It could be the full amount owed to all your creditors or percentage of the outstanding debt. Repayment is usually in one lump sum or paid off over monthly payments.
Applying for a proposal is not always a certainty as all proposals have to be agreed to by the majority of creditors and then authorized by the court.
A few of these protections from are:
- Salary Garnishments Immediately Stop
- Interest Stops Accumulating
- Creditors as well as Collection Firms Quit Contacting You
Features of a Consumer ProposalAssets such as your residence will not be vulnerable and are not part of the consumer proposal providing you continue to make your mortgage payments. When an individual’s proposal is authorized, your payments will not go up even if your salary or wages increase. You’ll never have to repay more than the approved sum. Additionally, the undesirable effect on your current credit rating is definitely less than that of a bankruptcy.
There are various benefits for you as well as your creditors when deciding on a consumer proposal as opposed to declaring individual bankruptcy.
We offer a complimentary meeting to review your finances and options. A phone call to our office may be the most stress relieving phone call you will ever make.
Here at Richard Killen & Associates, our own Mississauga bankruptcy trustee is going to review with you, the different alternatives available to you and give you professional advice to help you identify the most desirable approach in alleviating your debt problems.
Call us today for a complimentary assessment at 1(888) 545-5365. Our offices are located at 130 Dundas Street East, Mississauga, Ontario, L5A 3V8 just south of Square One Shopping Centre.
Are your debt problems keeping you up at night? You will sleep better after talking to one of our debt specialists. We hear that over and over again from our clients. Many wished they had called sooner than they did.
For additional information on Mississauga consumer proposals and how a Bankruptcy Trustee can assist in providing debt relief, please call up our Mississauga office today at 1 (888) 545-5365.