Consumer Proposal Settlements in Toronto, ON
A consumer proposal is a formal, legally binding process through which it is proposed to your creditors that while your debts are no more affordable, you are willing to pay a portion of what you owe through interest-free monthly installment which is much lower and manageable.
Consumer proposal is a way to consolidate your unsecured debt into a monthly payment plan that stops all interest. A consumer proposal immediately stops all collection proceedings and legal action by your creditors, including lawsuits and wage garnishment, giving you immediate financial stress relief.
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Together, we negotiate your existing debt amount down to a more manageable amount. It will be important to know about …
Although there is not the same level of duty required as when filing bankruptcy, filing a consumer proposal does mean that you take on some obligations. These include ensuring all agreed monthly payments are made on time, and attending two credit counselling sessions to learn more about financial management. There is no requirement to report on income and expenses.
Because in Canada consumer proposals are legally supported, all consumer proposals must be reported to the Office of the Superintendent of Bankruptcy and subsequently on to credit bureaus. A notice will be logged with the date you filed for a consumer proposal, which will remain on your credit report for three years after your proposal is completed. Following completion, the notice will be removed from your credit report by the credit bureaus. Most individuals notice an improvement in their credit score not long after completing their consumer proposal.
In an approved proposal, you agree to pay a small portion of your debt which does not have any interest charges. The fixed pay back amount can be paid in monthly installments. The maximum time it can be stretched up to is 5 years. However, you have options to pay more and finish it as soon as you want.
Yes you will be able to obtain new Credit Cards after you have filed your Consumer Proposal. We ensure that our clients are on the path to rebuild their credit history while they are in this process. Apart from credit cards, you will also get our professional advice to obtain a vehicle loan or a mortgage loan, for a prosperous future. Our goal is not just limited to making you debt free but also to help you possess personal wealth and assets in the long term.
When you file a Consumer Proposal you are able to keep your house and your car. Your other assets are also not seizeable under the law, which means you get to keep those assets which include your personal Savings, R.r.s.p & R.e.s.p, Business Assets and your Insurance Policy. It has also no effect on a person’s Pension Plan, Old Age Security and any other Income Benefit.
A Consumer Proposal will immediately stop any legal actions and wage garnishments. It will also put an end to the collection efforts against you by your creditors or the third party agencies. You will start receiving your full pay and all the harassing calls and letter will go away.
