What Is a Consumer Proposal?
A consumer proposal is a legal way to manage your debt and involves working with a licensed insolvency trustee to negotiate new terms with your creditors. These negotiations aim to lower your debt so you can pay what you can afford instead of the balance owed.
Should I File a Consumer Proposal?
A consumer proposal is useful to pay off any unsecured debts when:
- Your debt amounts to less than $250,000
- You don’t qualify for a debt consolidation loan
- You have enough income to make the new monthly payments
What Are the Benefits of a Consumer Proposal?
- If creditors are currently garnishing your wages to recover the debt, negotiating a consumer proposal will stop this.
- By negotiating a consumer proposal, your assets and investments are protected instead of filing for bankruptcy.
- You are not affected by bankruptcy on your credit report, so your access to credit is not limited.