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.