What Is A Consumer Proposal and Is It Better Than Bankruptcy?
A consumer proposal is a very powerful tool if you are feeling that you are hopelessly burdened by debt.
So what is a consumer proposal? A consumer proposal is simply a deal you make through a licensed proposal administrator who is regulated by the federal government. Now because the federal government regulates this deal there are lots of rules that you need to abide by.
Rule 1 – Better than Bankruptcy
The very first rule is that the deal must be better than the creditors would get it in a bankruptcy. Creditors rarely get anything more than $0 in a bankruptcy scenario. Therefore it is very easy to offer more in a consumer proposal.
Rule 2 -- Monthly Payment
The second rule of a consumer proposal is that you must offer a monthly payment arrangement. You will disclose your monthly income as well as your entire assets proposal administrator and the creditors rely on his opinion on how much you can afford to repay to your creditors. This information is all based on the honor system and a lot of the time the creditors will already know what type of consent is there willing to accept. The monthly payment amount paid to the proposal administrator proposal administrator pays the credit
Rule 3 – File with Licensed Proposal Administrator
The third rule of a consumer proposal is that it must be filed by a licensed, regulated proposal administrator. It cannot be filed by your accountant, lawyer or credit counselling agency.
At When To File Bankruptcy we get you in touch with a knowledgeable, fully trained, professional who will supply you with the information you need in a timely fashion.
Call us today and you will become debt free.