5 Top Benefits of a Consumer Proposals Brampton

Residents of the Brampton region who are in dire financial straits may be able to find

a solution with a consumer proposals Brampton. This debt relief program is one of two

insolvency options offered by the Canadian federal government under the Bankruptcy

and Insolvency Act. Many people use it to obtain relief from creditors as well as take

advantage of its many other powerful benefits.

Avoid bankruptcy

One of the top benefits that a consumer proposal offers is that it will allow you to pay

off your debts without resorting to bankruptcy. It’s become a popular alternative to

bankruptcy as most people across Canada don’t want to go bankrupt. If you have total

debts that do not exceed $250,000 (this does not include your mortgage) and you

have the financial capacity to repay a portion of your debts, you can file for a proposal

instead of a bankruptcy. If the proposal is accepted by the majority of your creditors,

you can then be well on your way to getting your finances back on track.

Keep your assets

Another big advantage is that a consumer proposal can allow you to keep assets that

might otherwise be taken away when you file a bankruptcy. In bankruptcy, you are

required to surrender certain assets and only keep assets that are exempted as part

of the negotiations for you to be able to receive a discharge and be absolved from

your unsecured debts. In a consumer proposal, you are not required to surrender

anything and so you can keep your home, car, RRSP and other valuable possessions

while repaying your debt.

Protection from creditors

Once your consumer proposal is filed, an automatic Stay of Proceedings takes effect

to protect you from your creditors. This immediately puts a stop to all harassing phone

calls you may be receiving from creditors. This will also stop creditors from garnishing

your wages or freezing your bank accounts. The Stay will also put a stop to any legal

action taken against you, including the ones that are pending in court.

Lower your debt

A consumer proposal is basically an offer that you make to your creditors where you

present to them your terms of payment and let them know that you can only afford to

repay a portion of what you owe. A licensed insolvency trustee will draft the offer and

negotiate with your creditors on your behalf to reduce the amount of debt that you need

to repay. If negotiations are done right, you may be able to lower your debt by as much

as 80%.

Fixed monthly payments

In a consumer proposal, you pay a fixed amount every month that won’t go up even

if your income increases. In a bankruptcy, if your income increases, you are required to

pay surplus income which means you will have to pay more. As part of the bankruptcy

process, you will be required to submit all proof of income to your trustee every month

and the trustee will compute if you have any surplus income and determine how much

more you will have to pay.

Filing for bankruptcy should be your very last option when you have an excessive

amount of debt and have no way to pay your creditors back. Talk to a licensed insolvency

trustee and consider filing a consumer proposals Brampton instead as it may be just

what you need to get your finances back on track without going bankrupt.

Debt Consolidation Toronto Can Help You Get Better Control of Debt

Toronto is a very expensive city to live in and many residents find themselves getting
overwhelmed by many debts from sources such as credit cards and payday lenders in
order to cope with living expenses. In many cases, debt consolidation Toronto can help
a great deal in making debts easier to manage and control.

Debt consolidation is one type of debt relief solution that allows you to combine all your
smaller debts and pay it using one loan that you get at a much lower interest rate. By
paying up all the smaller loans, you get rid of several debts that have different interest
charges and all  there is left to look out for is one monthly payment towards the new loan.

The primary aim you want to achieve when consolidating debt are the following:

1. To lower the interest rate,
2. Make the debt easier to manage by making only one monthly payment to
one creditor,
3. Pay out multiple debts in full with no negative consequences to your credit.

If you don’t achieve all three objectives, it can be a financial nightmare in the end.

Lowering the interest rate is one key factor to make this debt solution effective. If you
can’t find a loan that will reduce what you are currently paying on interest rates, then it
does not make sense to consolidate at all. Simply do the math to make sure that you
are actually paying a lesser amount in interest rates. Calculate the interest rates on all
your debts, including credit cards, payday loans and other unsecured loans you have,
and figure out how long it would take you to pay off these debts at your current payment
rate. Even if you get a loan with easy payment terms, but end up paying higher interest
rate because of the longer term, you will only be paying more debt in the long haul. This
totally defeats the purpose of consolidating. If it’s not possible to reduce your interest
rates, you certainly should reconsider this option. Many lenders can offer you a loan with
a low interest rate if you have a good credit score. If you do not meet the credit score
requirement, you have to work at improving your credit behavior first in order to bring
it up to standard.

Finding a consolidation loan with easier repayment terms is another critical factor to
make this debt solution work. It really does not matter if you choose a loan with a shorter
or longer repayment plan. What matters is that the loan provides the best terms in such
a way that it can help you pay off all the debts that you owe in a way that is easier for you
to manage without adding more to your debts. In some cases, a shorter payment period
will be the best option because if you pay off the debt quicker you will end up paying lesser
in interest charges. There are some cases as well where a longer repayment plan will be
more helpful in allowing you to pay up your debts at an amount you can afford every month
until you can get back on track financially. The longer time, however, might add up interest
charges, so again do the math to see if it will cost you more than if you just paid your debts
at a shorter time.

Take into account all these factors to help you figure out if debt consolidation Toronto may
be a good decision for you. If these factors are equally applicable to your financial
circumstances, it is possible to manage your debts successfully through consolidating.

Toronto Business Bankruptcy Alternatives for Your Small Business

Many small businesses are facing financial difficulties in these hard times, and many
entrepreneurs only see bankruptcy as the only option they have to pursue relief from
excessive levels of debt. But that shouldn’t be the case as there are many
Toronto business bankruptcy alternatives that are available for small business owners.

Filing for business bankruptcy in Canada can be very complex. There can be personal
implications that may affect your family, business partners and other people who are
in one or the other connected to the company. Much of the bankruptcy process has a
lot to do with the structure of your business and the types of creditors you have.

Partnerships and Sole Proprietorships

If your small business is legally set up as a partnership or as a sole proprietorship it
means that the business is structured in such a way that your personal assets and
liabilities are not legally separated from the business. As such, you as the business
owner is the one who goes bankrupt and not the business itself. This is treated as a
personal bankruptcy and your creditors are dealt with according to the laws under a
personal bankruptcy. As a consequence, any personal assets you have will be used
to limit the liabilities towards any creditors.

Incorporated Businesses

In an incorporated company, the business is considered a separate entity from the
person that operates the business. This means that your personal assets and liabilities
are legally detached from the business and, in turn, assets and liabilities of the business
are held separately from those of the business owner. The company can go bankrupt,
and the assets of the incorporated business will be sold to reduce the liabilities to your
creditors. Personal assets of the business owner will not be touched.

You will need to be very careful if you are thinking about bankrupting the business.
Another thing to weigh on is the possible implication if you have personally guaranteed
business debts. Creditors will no doubt go after you for the debts you have guaranteed
and this might force you to either negotiate repayment terms with creditors or to file for
personal bankruptcy as well.

If you assess that your small business will still be able to make money for the long term
and is merely facing hard times due to the economic downturn, you might want to consider
making a an informal or formal proposal with your creditors or finding another alternative
such as placing your business into receivership or sell the business without the help of a
secured creditor.

A small business bankruptcy can actually be very costly and, consequently, it can create
more problems than it solves. It’s not a solution for all and may not be the best option for
your small business. It’s crucial that  you as business owner understand all the other
Toronto business bankruptcy alternatives that are available to save the business before
deciding on bankruptcy. Consult with a licensed insolvency trustee or a lawyer to get
professional advice and more specific information about you can save your business from
insurmountable debt.

Oshawa Consumer Proposal Pays Your Unsecured Debts

For many people struggling with debt and finding an alternative to personal bankruptcy, filing an Oshawa consumer proposal may be the right solution. It can allow you to reduce your debts and pay them off while allowing you to keep your assets.


A consumer proposal is a settlement offer to your creditors that you pay them a certain percentage of the total amount that you owe them and that they will forgive the balance. The offer involves a debt repayment plan of making equal monthly payments over time, usually a period between three and five years, whichever is manageable for you and fair to your creditors.


A licensed insolvency trustee or LIT will negotiate with all your creditors to reduce the total amount of debt you owe. The LIT will also negotiate that you will not be charged for interest charges or any additional fees. You pay the fixed monthly payment to your LIT every month who will then distribute the money to creditors that are included in the proposal.


A consumer proposal allows you to pay for your unsecured debts only. This may include:

• credit card debt,
• lines of credit,
• payday loans,
• personal loans,
• income taxes, and
• student loans that you are still paying after you’ve been out of school for more than 7 years.

Secured debts, such as your mortgage or car loan, cannot be included in your consumer proposal offer.


A consumer proposal is one of the legal options provided by the government to give relief from significant debt problems. The other legal option is a personal bankruptcy. The most remarkable feature of both options is a legal stay of proceedings. This is an automatic feature that immediately takes effect once it is filed and requires creditors to stop with their collection efforts made towards you, which includes harassing collection calls, wage garnishments, frozen bank accounts, lawsuits and other legal actions being taken against you.


Both options can only be administered by a Licensed Insolvency Trustee. A LIT will review your financial situation to determine if a consumer proposal is an appropriate solution for you. In general, it may be the right choice if you meet the following requirements:

• Your total unsecured debt is less than $250,000.
• You have the ability to repay your debts but just need more time to pay them back so that is is more manageable for you and your family.
• You want to stop the accumulation of interest charges which can easily balloon your debt.
• You want relief from the harassment of collection calls, the embarrassment of wage garnishments and frozen bank accounts and the stress and anxiety of lawsuits.
• You want to keep assets that you might likely lose in a bankruptcy.

As you can see, a consumer proposal is a very flexible solution. You get to pay your debts at a lower amount agreed by your creditors. In turn, your creditors get more than they would receive when you file a bankruptcy.


If you've been turned down for a consolidation loan, and credit counseling is just not the right fit for you, the next best debt relief solution could be an Oshawa consumer proposal to help you get back on track financially. Talk to a licensed insolvency trustee in your area to know if this is the right step to take and to find out all your options.

Tips to Make Debt Consolidation Mississauga Work for You

Debt problems are very real for many residents of Mississauga, but consumers are fortunate to have many options that can help make it possible for them to get out of debt. Debt consolidation Mississauga is one of the simplest ways that is why more people are turning to it to help them manage their existing debt.


Debt consolidation is a debt relief solution that helps you pay off multiple unsecured debts such as credit card debt, payday loans, utility bills, unsecured lines of credit using one new loan. When you consolidate your debt, you only have one payment to make instead of several payments with different creditors. In addition, it reduces the monthly amount and interest charges that you would have to pay to settle the debt. .


It’s a simple, straightforward solution with some benefits:

• You have only one payment to make instead of multiple payments.
• You pay at a lower interest rate.
• You pay one creditor with a single due date instead of multiple creditors with multiple payment deadlines.
• You get to repay many of your debts.

But, can it really be this simple and easy?


Remember that when you are consolidating debt, you are simply getting a new loan to pay off your old debts. You are not reducing the amount of your debt, your debt level remains the same. Nothing has changed essentially. You are only restructuring your debt and refinancing with a new loan to pay off some of your debts.


If you can combine all of your credit cards, line of credit and other loans into a lump sum and you can pay this off with at a lower interest rate and with a monthly payment that’s manageable, then debt consolidation can be a godsend. But if you don’t know how to consolidate your debts the right way, you could be worse off.


Getting out of debt through debt consolidation can be a real possibility if you keep in mind some of these tips.


Get a new loan with a low-interest rate


Interest rates are the real culprit here. They can really let your debt balloon, so reducing the amount of interest you pay should be one of the first things you need to work on. Try to negotiate with your existing credit card providers and ask them to lower your interest rate. If your credit rating is reasonable, they may help you to avail of one of their low-rate cards. You can also ask your bank or credit union for a term loan which usually come with lower interest rates than most credit cards.


Research your options before consolidating


There are many ways to consolidate debt. In Canada, your options include:


Unsecured loan - A loan that is not tied to any asset.

Secured loan - A loan that requires collateral as security for repayment.

Balance transfer - Where you transfer your outstanding debt to a low interest or zero interest credit card for a certain promotional period or a new or existing line of credit.

Debt settlement - Where you stop making payments and then negotiate with creditors to accept a smaller amount as full payment.

Debt management plans or DMP - A payment plan where you pay a specified monthly payment to a credit counseling agency who disburses this to your creditors.

Using a home equity loan / refinance mortgage / second mortgage - A loan that you take out against the portion of your home that you own.


The right type of consolidation loan will allow you to pay off your debts at a lower interest rate and a payment plan that is manageable.


Be mindful of taking a debt consolidation in Mississauga only if it is the best option for you and your family. Talk to a Licensed insolvency Trustee before making any final decision so you can weigh in all the options you have to help you find the right solution.

What are the Reasons Why a Credit Counselling Oshawa Service Sometimes Fail?

By delving deeper into the concepts that are surrounding debt relief by virtue of credit counseling Oshawa, you’d readily understand in no time that all of them really make practical sense. What is even more surprising to know is that even if they are true, its success rate can’t be described as something stellar or impressive.


What is usually involved in credit counseling is getting sound and practical advice or receiving the invaluable insight of a seasoned debt professional. Normally, what they do initially is take a closer look at your current debts, see also the amount of money you are receiving as income, and look into your regular monthly expenses, too -- by performing this measure they will be able to come up with a plan of action to take that is directed towards reducing your total debt amount. They know as well all the possible, legal ways that can be taken advantage of so that you can fully settle everything that you owe. Furthermore, they are actually the best person to tell you if filing for bankruptcy is your best option left or if there would be other alternatives that you could still try and are worth taking.


The major advantage of having a credit counselor by your side is having a qualified expert give you good guidance. Someone who can help you come up with a sound budget and a payment plan to take. In essence, this really is what you need to get so that you’d be able to get over your debts. Provided that you have the right amount of commitment, a well-structured debt payment plan should suffice and help see you through.


However, statistics are indicating that not even half of the pros who took on the credit counseling option can be said to have successfully overcome the financial quagmires they are in. Usually, what happens instead is that they would end up filing for bankruptcy. There are two elements that are seen as the likely reasons why credit counseling is sometimes bound to fail and not being able to serve its intended purpose.


The first one has something to do with having a wrong attitude or line of thinking with respect to this option as an effective debt relief measure. Usually, this comes in the form of people’s ability to stay committed to it or that they continue incurring debts. Actually, there is a manifold of scenarios that can lead to the failure of credit counseling. For as long as the debtor is not willing to make adjustments to his budgeting and spending habits, he is not going to have the required discipline to carry through the payment plan that he consented to commit to. It is very difficult and challenging really to try to pay off one’s debt. Falling back to it can happen in a snap, so, therefore, you really need to take a conscious effort of not making any deviation because just one wrong move can send everything haywire and all the previous efforts you made will be rendered futile, fruitless.



Another common reason why credit counseling Oshawa services sometimes fail and thus are not able to deliver one’s best expectations from it is due to the unrealistic representation of their financial well-being. Clients are given the wrong assumption on what they can really get from this type of debt relief option. Basically, credit counseling services should be offered only to debtors that are capable of clearing their debts. Some people, though, are under the impression that it can help them a lot in reducing their outstanding balance, but their expectations are in vain because it won’t. In addition to this, your counselor won’t be able to facilitate a negotiation on your behalf. This means to say that if you have an urgent need to have a dialogue with your creditors, you will have no other choice but to do it yourself.


People who are on the verge of bankruptcy shouldn’t make any attempt to talk this out to their credit counselor because they won’t be able to do anything to keep that from happening. This is especially true when you see that you don’t have any chances of receiving an augmented income anytime soon. Debtors who've made up their minds and are filing for bankruptcy are also encouraged to enlist the help of credit counselors but it is important to understand that they won’t be able to do anything to prevent or keep that from happening. If bankruptcy is bound to find them, it will happen no matter what.





When people are not able to meet the minimum payment for their debts, the practical option left for them to take is consider a debt management plan or take up a debt settlement service. If there really is no possibility of them making any payment, then filing for bankruptcy is the only option that is left for them to take. The very least help that providers of credit counseling Oshawa service can give you is to help you choose and decide what practical options you will need to take so that in the end with much commitment from your end, you can finally become debt-free.

Is Bankruptcy Brampton the Right Solution for Your Debt Problem?

Your debt may seem devastating and uncontrollable. You feel you can’t do anything else to solve it and the only way is to file for bankruptcy in Brampton. You’re certainly not alone.


Brampton is a thriving city in Southern Ontario. The booming economy has brought great opportunity to the region, but has also made the area an increasingly expensive place to live. As a result, many residents of the Brampton region are starting to feel overwhelmed with their debt and financial problems.


So if you are among the many residents of Brampton feeling trapped by large amounts of credit card debt, don’t feel too stressed. You may be dealing with wage garnishments, facing threats of legal action and avoiding harassing phone calls from creditors, and you just want it all to stop. And yes, filing bankruptcy puts a stop to all of these things, but it’s not the only way to free up your debt load.


Often the best ways to deal with a debt problem is to talk with someone you feel comfortable enough to talk about it. The right person to talk about your debt problems are Licensed Insolvency Trustees who specialize in bankruptcy in Brampton. LITs have the knowledge and experience you need to find out the many options you may have to solve your debt problem.


Brampton Trustees can be a solid support system that you and your family can rely on to openly discuss and learn about all your options for debt relief. They understand that having debt can be stressful and talking about it can be very emotional and difficult. They have seen and helped many people in your shoes and you can be assured that they will be able to help you find the best solution for your financial situation.


In your first meeting with a Brampton Trustee, they will ensure you understand the benefits and consequences of bankruptcy. They will point out important details that you need to know about bankruptcy. This will include, for example, the following facts:

1. In order to qualify for bankruptcy, you must owe at least $1,000 and be unable to pay monthly payments and your total debts are greater than the total value of the assets you own.
2. You won’t lose everything in a bankruptcy. There are exemptions established by the federal Bankruptcy and Insolvency Act that can protect some of your possessions depending on where you live.
3. When you file for bankruptcy, a Stay of Proceedings immediately comes into effect to protect you from legal action, harassing phone calls, any wage garnishments and other collection efforts from your unsecured creditors.
4. If you make sure to meet all the terms and conditions, the bankruptcy process may be as short as nine months. After this time, you have a fresh start and can make plans to rebuild your financial future.
5. Bankruptcy is not the only debt solution available to Canadian debtors. Your Trustee will explain all the debt relief options that you may be able to use and explain if they would fit your situation.

Whether or not filing for bankruptcy in Brampton might be the best debt option for you, a Licensed Insolvency Trustee will do everything possible to find the best solution for you. They will work with you to provide an effective solution that will allow you to get out of debt and achieve financial stability in the fastest and least expensive way.

Bankruptcy Solutions Explained

Public education on proper bankruptcy solutions may not stop an impending bankruptcy from happening. But if it is indeed bound to happen, it should help cushion you up from such an impending difficult financial situation. Even when you have a solid debt management or financial management structures in place, in spite of them being there they may not be good enough to stop or keep it from happening and you may just spiral down to bankruptcy. But what is bankruptcy, in its real form? As far as everybody is concerned, the general notion of many people about it is that it is something dreadful, something to be feared or an impending financial gloom is about to happen. What can we expect from bankruptcy?



There was a point in time some decades ago that filing for bankruptcy was considered as the most effective and legal way to ease you out of your financial woes but at the expense of your creditors. However, in 2005, after the Bankruptcy Abuse and Consumer Protection Act was implemented and was in full force since then, the volume of private individuals and business entities that are filing for bankruptcy significantly went down. The problem that experts are seeing here is that the new act has set a standard that is too high to achieve, and for that reason alone only too few now would be able to qualify and file for what a bankruptcy relief could provide them.



The current legislation defines that there are two classifications for bankruptcies. There are two processes that differ from each other to a great extent. Chapter 7 bankruptcies cater to the most extreme of financial situations where the person is rendered completely incapacitated to make any kind of repayments for his debts. And thus, the only direction he has for himself is to really start over again, start fresh and anew. With this type of bankruptcy, debts can be written off or a percentage of the outstanding debts from creditors can be canceled off by virtue of putting on sale some of the debtor’s valuable and high priced assets like his home, car, or real property. At the other end of the rope, things are completely the other way around with Chapter 13. In here, there is no selling of debtor’s high-value asset or property is involved. What happens instead is that the debtor and his creditors, with the help of the proper court, would try to find new arrangement or come up with a newer setup for making repayments. Whatever arrangement that the parties would arrive in, it would have to be economically viable, affordable, and feasible for both.



Can You File Bankruptcy on Your Own?


This is the usual argument of anyone who is not in the know. Of course, you can process things on your own and try to file bankruptcy if you really need to. However, you are missing a lot if you will decide to do things on a DIY approach as opposed to having a Licensed Insolvency Trustee take charge of that on your behalf. Enlisting the help of a Licensed Insolvency Trustee may put you on a more advantageous position and save you from a gamut of unnecessary hassles along the way and sometimes, if you are indeed lucky enough, may even help you save some good amount of money. One reason why it is recommended that you have a Licensed Insolvency Trustee help you out on this aspect is that they know all the technicalities that are involved here and, thus, eventually giving us greater financial ease.


Furthermore, this regulation necessitates that you need to secure first and complete a credit counseling program prior to getting your bankruptcy application approved. Therefore, you’d be informed and get yourself educated first of your upcoming situation and perhaps would be able to see the other possibilities that can happen and all those will help you see clearly whether what you will indeed need legal assistance or if bankruptcy is the only option left for you. In any case, it is highly suggested that you make an effort to reach out to an attorney if you are unsure of what course of action you will need to take.



A foreclosure is a High-Risk Option (Make Sure You are Protected)


It is of paramount importance to understand really that failure from your part to keep up with your mortgage dues may eventually catch up on you and put your property in peril of being foreclosed. Foreclosure is something every homeowner dreads to happen to their property. A homeowner who knows that he is running the risk of not being able to settle his upcoming mortgages in the coming months needs to know in advance what options are available to him, in any case, that things regarding his financial situation turn sour. If you feel in any way that your lender is intimidating you on your mortgage dues or you have received a notification for possible property foreclosure, or if you are under the impression that something bad is brewing up because your lender is not so adamant in recovering his investment, then know for certain that these are good indications that you need to reach out to a distinguished legal practitioner so you can seek some advice regarding various bankruptcy solutions.