A Consumer Proposal gives you a way to adjust payments to your creditors, by reducing the amount you have to pay back and extending the time period of paying by generally 5 years or less, with no interest payments.
Not only do you settle your debt obligations and avoid bankruptcy, but all other actions from your creditors are stopped once the Consumer Proposal is filed. Imagine no more harassing phone calls and no more wage garnishment or any kind of court actions.
A consumer proposal is filed through a Licensed Insolvency Trustee (“LIT”). A LIT is licensed by the Office of Superintendent of Bankruptcy to administer the process of filing a Consumer Proposal under the Bankruptcy and Insolvency Act. Credit720 is not a LIT, Credit720 works with the debtor to fully understand all options to deal with debt and how each option fits their budget and the long term impact on their credit rating. If you decide a consumer proposal is the most viable option you will be introduced to a LIT who will prepare and file your consumer proposal.
A consumer proposal can consolidate mostly unsecured debts such as:
- Credit cards, Personal lines of credit and Bank overdrafts.
- Personal loans and Payday loan advances.
- Personal Income tax, Source deductions and GST debt with Revenue Canada.
- Student loan both Federal and Provincial (pertaining to condition, you’ve been out of school for 7 years from the date you last attended school).
- Debts resulting out of any Re-possessed car or house, shortfalls can be included.
- Debts sold to collection agencies such as phones bills or other service related debt.