Consumer Proposal

Information relating to the Consumer Proposal process offered by the Office of the Superintendent of Bankruptcy Canada.

Consumer Proposal - How can it lower my monthly payments?

Consumer proposals can be highly effective in reducing overall monthly payments and easing the pressure of the regular monthly payments. They also reduce the overall debt. Consumer proposals are a type of light at the end of long tunnel. But homework must be done prior to filing as it is an R7 or R9 Orderly Repayment and will reflect so for the term the proposal and there years thereafter. As discussed, even a decline will be registered against the credit bureau as the same rating.

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

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.

Advantages of Filing a Consumer Proposal - Principal Debt Reduction!

There are some great advantages to filing a consumer proposal including:

  • Reduced Principal Debt - not just interest reduction
  • Lower overall monthly payments - and the amount you pay back is Interest Free!
  • Stop all Collection and Creditor Calls - stop the harassment by bill collectors

Consumer Proposal - What is it? Is it an option for me?

A dynamic and effective alternative to bankruptcy, but still with many of the restrictions of an R7 Orderly Payment of Debt prgram.

A Consumer Proposal is, essentially, a request to the client's creditors to reduce to total amount of all unsecured debt to an interest free amount. The request for the reduction would also include a term which would specify in how many months the reduced amount will be repaid. Once the consumer proposal has been submitted to the creditors through the office of a registered trustee, the creditors will review the request and vote on the matter. The creditors have up to 45 days to review the consumer proposal plus up to an additional 15 days in courts administration. During the time of the vote, there is a stay on all of the client's accounts.

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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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