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A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). In this process, the LIT will work with you to develop a "proposal"—an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both.
A consumer proposal is an alternative to filing bankruptcy in Canada. It’s a legally binding agreement negotiated with your creditors through a Licensed Insolvency Trustee. Once a consumer proposal is filed, there is a legal stay of proceedings that provides you with immediate legal protection from creditors and debt collectors.
What is a consumer proposal? A consumer proposal is a legally binding agreement regulated by the Office of the Superintendent of Bankruptcy. If you are facing financial challenges, you are within your rights to ask for debt forgiveness.
A consumer proposal is a debt settlement arrangement and an alternative to filing for bankruptcy in Canada. It is filed through a Licensed Insolvency Trustee (LIT) who negotiates with creditors on your behalf. It is a legally binding agreement, and applicants pay less debt than initially owed by 70 or 80 percent.
Mar 19, 2024 · A consumer proposal is a formal arrangement whereby debtors can negotiate with their creditors to restructure their debt and make repayment arrangements over a longer period of time — up to five years.
Consumer proposals are offers made by debtors under the Bankruptcy and Insolvency Act (BIA) to modify their payments to creditors. For example, debtors may propose paying a lower amount each month over a longer period of time, or paying a percentage of what they owe.
5 days ago · Remember, a consumer proposal is designed for financial relief – there are no surprise fees with a Licensed Insolvency Trustee. Myth #2: Salary Increases Only Benefit Creditors During My Proposal. The rules surrounding "surplus income" can be confusing. Under bankruptcy, your monthly payments fluctuate with your income.
A consumer proposal is a legal avenue available to Canadians, just like you, who are experiencing financial difficulties. You may find yourself unable to repay all of your outstanding debt, but can still afford to repay a portion of what you owe. In this case, a consumer proposal may be a solution to help you get out of debt and start anew.
Mar 7, 2024 · The biggest difference between a consumer proposal and bankruptcy is the impact on your assets. A consumer proposal allows you to renegotiate your unsecured debts (credit cards, lines of credit, etc.) and keep your assets and secured debts, like your mortgage and car loan, separate.
The purpose of a consumer proposal is to help you get out of debt sooner by making a deal with your creditors to repay less than you owe. Consumer proposals are the only government-approved debt settlement program in Canada.
