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Filing consumer proposal is the last resort to rescue yourself before you are declared bankrupt. A joint proposal can be filed where two people are under debt that is substantially the same.

Afraid of surrendering all your assets to your trustee is when you go bankrupt? Don’t worry, consumer proposals are here to rescue. A consumer proposal is an arrangement negotiated between you and the creditor through your CPA (Consumer proposal Administrator) or in other words the trustee.

While some people tend to get advice from counselors promoting smart budgeting services, Canadian law has made it very easy for the people to file a consumer proposal jointly for debt settlement in Red deer, Alberta, Edmonton, and all the other regions.The two parties who want file a joint proposal share majority of the debts that are to be covered in that proposal.

On October 31, 2018, the Office of the Superintendent of Bankruptcy released its most current statistics on personal bankruptcy and consumer proposal filings which shocked the whole country. Bankruptcy cases decreased at an alarming rate of 6.4% while the proposal filing was increased by 7.0% as compared to the year ended on August 31,2017. Around 5800 consumer proposal were filed till the end of August month this year in Canada. The rate of filing consumer proposals is increasing as it offers all the advantages of the bankruptcy and saves your skin from the negative impact of the same.

Filing a consumer proposal jointly gives an edge over the proposals that are filed separately by two or more individuals. The primary advantages of filing joint customer proposals are:

  1.     It increases the debt limit up to $250,000 times the number of parties filing the joint consumer proposal.
  2.     It reduces the costs to administer the proposal so that more of the money is directed towards repaying the debt.
  3.    Filing proposals individually will lead to more payments per month while in joint consumer proposals you only must stress about one payment per month making it easier for all the parties in the proposal.As we all know every coin is double-faced, there is a major disadvantage of filing joint consumer proposals which is:One party backs out: After filing the proposal all the parties are responsible for the payment every month and if one party backs out and doesn’t provide their fair share in the payment then other parties have to make up for that share, otherwise, the proposal will be terminated.

    So before filing a joint consumer proposal, research for some good debt and credit counseling programs and exhaust all the other options available in the market.

    Credit720 is well-renowned Insolvency Credit Counselors which is registered by the OSB and Industry Canada offer many services like consumer proposal filing, bankruptcy, credit counselingand budgeting services with free initial counseling. They provide guaranteed customer satisfaction and always put their clients on the topmost place. Leading with the motto of “No catches, No Gimmicks – What you see is what you get!” they offer the bestcounseling services so stop wondering about other option and pay their office a visit.