Is a Consumer Proposal in Scarborough the Right Debt Solution for You?

Many people in Scarborough, Ontario who are bogged down with a very heavy debt load and simply need more time to pay are probably wondering if a consumer proposal in Scarborough is the right debt solution for them. With so many information out there, it can be very confusing to make the right choice.

Residents of Scarborough do not have to decide on their own.They can consult with a Licensed Insolvency Trustee who can provide a balanced view of every available option for eliminating debt. The trustee will review your financial situation and help you decide if a consumer proposal may be the best way to help you get out of debt.

Only a Licensed Insolvency Trustee can explain in detail both the positive and negative sides of a consumer proposal. He is the only debt professional permitted by the federal government through the Bankruptcy and Insolvency Act to administer consumer proposals, as well as bankruptcies, so he is knowledgeable with the laws that govern it as well as the process involved to make it legally binding.

In general, proposals to creditors are best suited to debtors who meet the following qualifications:

• You have outstanding unsecured debts of more than $1,000 but less than $250,000
• You want to repay your debt but don’t want to lose your house, car and other assets
• You’re having difficulty making monthly payments and need more time to pay them
• You can’t afford your monthly payments and need help to reduce the balance on your debt
• A debt consolidation loan won’t cover all of your debts
• You’d like to have an exact time period for paying off all your debts and become debt free

If you meet all the above qualifications then you can take advantage of the many benefits of filing a Consumer Proposal, which can include:

• You can negotiate to reduce the overall sum of what you owe.
• Interest charges are frozen and stop accumulating at the date you file.
• You keep all of your assets, including any tax refund.
• You can stretch your monthly payments for as long as 60 months to lower the amount you have to pay every month.
• Monthly payments are now interest free.
• Payment amount is fixed regardless of how much you earn.
• Payment period is fixed regardless of income changes.
• You do not make any surplus income payments.
• Wage garnishments stop immediately.
• Calls from creditors stop immediately.
• Creditors cannot take any legal action against you.
• You do not pay your debts in full like in a Debt Management Plan or a debt consolidation loan, you are required to pay only a portion of the debt you owe.
• You do not need to submit any financial information to your Trustee.
• You are not required to give your tax credits or refunds to your Trustee.
• You can become debt free in three to 5 years time
• The effect on your credit score is not as severe as in a bankruptcy.
• You avoid bankruptcy.

A consumer proposal in Scarborough is one debt relief option that can greatly benefit many residents who have debts that continue to accumulate month by month and who are finding it nearly impossible to make ends meet. It gives them the opportunity to repay a portion of their debt and in doing so it restores their dignity and confidence in their own ability and helps them to regain some sense of control over their stressful financial situation.