Most individuals think of a Pickering consumer proposal through a Licensed Insolvency Trustee as a good way to achieve debt relief. The Bankruptcy & Insolvency Act includes two recommendations, one is personal bankruptcy and the second is a proposal.
What do I need to know about a Consumer Proposal?A proposal is an understanding with creditors with the assistance of a Licensed Insolvency Trustee and is also approved by the court. A proposal is an official and legal arrangement which generally establishes a kind of defense against creditors as well as loan collection agencies.
It is a debt payback plan that takes into consideration your (the borrower) fiscal resources. It could be to be the sum of the full value owed to creditors or possibly a percentage of what is owed. Payment is often in the form of a one-time payment or settled through monthly installments.
Submitting an application for a proposal isn’t always an assurance as all proposals must be accepted by the creditors as well as authorized by the court.
A few of these protections from creditors include:
- Salary Garnishments are Discontinued
- Interest Charges Cease To Accumulating
- Creditors and also Debt Collection Agencies Won’t Call You Anymore
Advantages of A Consumer Proposal
Fixed assets like your home are certainly not in danger and are generally not part of the consumer proposal. The moment your proposal is approved, your payments you make will stay the same even if your salary increases. You will never pay more than the agreed sum. Additionally, the adverse effect on your own credit score is actually less than that of a bankruptcy.
There are several advantages to you and to your creditors in utilizing a consumer proposal versus claiming bankruptcy.
We offer you a complimentary consultation and the call to our firm could possibly be the best stress reducing call you may ever make.
Here at Richard Killen & Associates, our Pickering Licensed Insolvency Trustee will certainly review the different alternatives available to you and offer professional advice which can help you decide on the ideal alternative to address your fiscal issues.
Give us a call for a complimentary consultation at 1 (905) 420-6565. Our offices can be found in 1410 Bayly St., Unit 6B, Pickering, Ontario, L1W 3R3. We always provide cost-free auto parking.
Remember, your call to our office can be the most worry reducing phone call you will make.
For details on Pickering consumer proposals and how our Licensed Insolvency Trustee will be able to help alleviate your financial worry, make sure you get in touch with our Pickering office today at 1 (905) 420-6565.