Consumer Proposal Risks - Will I qualify? -What happens if I'm not accepted?

Risks, Eligibility, Credit Implications and Conflicts of Interest.

Return to Advantages of Consumer Proposals.

Consumer proposals are without doubt an extremely valuble option at the hands of the Canadian consumer. They do have some risks though, and certainly some limitations:

Among the many risks of filing a consumer proposal are that it could be declined by your creditors. In this event, an R7 orderly payment of debt program would be reflect on the credit bureau, even though it was not approved! Of course if the proposal is approved, the same rating would reflect. It will drop off the public records within 3 years of the last payment of the consumer proposal. Until this time, obtaining unsecured credit will be virtually impossible.

Consumer proposals are at their core, based on surplus income, as per federal standards. Although a client may feel that they have no surplus at all, by federal standards they may have a significant amount of surplus income, making the consumer proposal either impossibe, or not effective enough to be warranted. Further, if the client holds equity in a home or other assets, the consumer proposal may not be an option, depending on the value of the assets or investment, as well as the total amount of unsecured debt. The client must legally be insolvent - their debts must out-weigh their assets.

When considering a consumer proposal, it is imperative to consider any conflicts of interest that may arrise either from work-related policies, corporate or co-signed liabilities. Co-signed accounts are an especially key area of concern as the co-signer of that account may be affected in the same manner as the applicant, if no prior arrangments are made. Much in the same way as credit counseling, all unsecured credit must be included in a consumer proposal, no exceptions.

Other debt reduction options like Debt Settlement allow you to include only those accounts that you would like to reduce. Please visit our Debt Settlement page for more information on Debt Settlement, how to qualify and what is included in debt settlement and reduction services.

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Another Successful Debt Settlement...

I must say that I always ‘do my research’ in every area of life as best as I can so that I make the right purchase the first time. Well, this was not an area I was even remotely able to make a definitive call on since my wife and I never had any previous debt issues.
I researched and met up with many different Debt Resolution/Debt Solvers and tried to work with making monthly lump payments but it wasn’t the correct solution and in the end failed for us. I started researching into solving our Debt problems all over again when I came upon the idea of Debt Settlement…that was the correct solution and something my wife and I should’ve done the year before. The problem was who could we trust to do it and who was the best person for the job. That was our newest problem.
I started making calls and looking up as much information as I could get on the Companies that did this and I was confident that Canada Debt Settlement were the tops in this area so I called and spoke to Boaz. I was actually somewhat shocked as he had answered my questions and explained the way it worked so well I had no more questions the next day. This was a relief as the time frame for us was very tight and to this day I am amazed that everything was settled going right down to the wire on our tight schedule and that Boaz still managed great savings for us in the process. It pulled us right out of debt and had we called Canada Debt Settlement the year before we would’ve saved even more and not carried that Debt burden unnecessarily for an extra year.
If you’re doing your research looking for who is the right one for the job, I can honestly tell you save your time and money and go with Canada Debt Settlements. I would be happy to talk to anyone that has any uncertainty as the expertise and hard work Boaz did for us was truthfully incredible.
S.B. of Mississauga
Received Dec 23, 2013 via email
Total Savings: $18,000+

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