The experts at Hoyes Michalos & Associates offer free personal confidential consultations to help you find the best way forward to financial health.
Consumer proposals are a proactive solution to your debt problems. You are taking charge of your money problems, and proposing a settlement with your creditors. Filing bankruptcy in Canada will also deal with your debts, but that's a more reactive approach, when you have no other options.
A consumer proposal is a legally binding, negotiated settlement made between a you and the people you owe money to.
In a typical proposal you would make one monthly payment over a period of no more than 5 years.
Those funds would be distributed among your creditors. Once you have made the final payment, your debts are eliminated. In most proposals you will pay less than the full amount you owe and still get discharged from your debts.
Even if you qualify for a debt consolidation loan, you will be repaying all of your debts, in full, plus interest. If you have more debt than you can handle, that's very expensive. Consumer proposals feature one reasonable monthly payment, that you can afford, to deal with all of your unsecured debts. Imagine having some cash left over at the end of the month!
Consumer Proposals have several key advantages over bankruptcy for those who qualify.
In a bankruptcy you lose your tax refund, and certain assets (like RESPs and any contributions you made to your RRSP in the year before bankruptcy). Depending on where you live in Canada, you may also lose the equity in your house. With consumer proposals you keep all of your assets, including your tax refund.
Unlike bankruptcy where the more you earn the more you pay, Consumer Proposals have a fixed payment that never increases. So, if you expect your income to increase, Consumer Proposals are better than bankruptcy.
The best way to determine if a Consumer Proposal is the right path forward for you is to have a free confidential consultation with a debt consolidation expert.
As a federally regulated program, Consumer Proposals have specific requirements you must meet:
Even if you don't qualify for a Consumer Proposal, there are still several options available to you for getting out of debt. Review all your options with a Hoyes Michalos & Associates trustee.
If you think a Consumer Proposal is the right solution for you, the next step is to talk with a licensed Consumer Proposal administrator. If you live in Ontario, Hoyes Michalos & Associates has offices throughout the province where you can meet with a senior licensed adminstrator. We guarantee respect, confidentiality and custom tailored expert advice during your free, no obligation consultation.
You can join the 10,000 people we've helped get out from debt. Anyone can run into financial problems, at Hoyes Michalos & Associates we're determined to help you get back on track so you can get on with your life.