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Consumer Proposal in Canada: Everything
You Need to Know

Carrying debt may be a great burden, especially if you are having trouble making your payments. You may choose from a number of choices in Canada to manage your debt and start over financially. An very well-liked choice is a consumer proposal. This article will go over all you need to know about what is a consumer proposals in Canada.

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A Consumer Proposal: What is it?

  • A legal agreement between you and your creditors called a consumer proposal enables you to settle your debts for less than the entire amount owing.
  • It is a type of debt relief that is handled by a licensed insolvency trustee (LIT). The LIT will collaborate with you to draft a proposal outlining your debt repayment strategy over a certain length of time, often up to five years.
  • Your creditors are then asked to approve this proposal.
  • You will make payments to the LIT, who will then give the money to your creditors if they accept the proposal.
  • As a result, you will only have to pay one payment each month as opposed to several payments to several creditors. Your outstanding obligations will be forgiven, and you will no longer be in debt, once you have made all the payments stated in the plan.

 

How Does a Consumer Proposal Work?

  • Consultation with a licensed insolvency trustee is the initial stage in the consumer proposal procedure.
  • To assist you in deciding if a consumer proposal is the right course of action for you, the LIT will assess your financial status.
  • If you want to proceed with a consumer proposal, the LIT will assist you in developing a proposal that details your debt repayment strategy.
  • The proposal will contain information on your earnings, costs, possessions, and debts. A justification for why you are unable to pay off your obligations in full must also be included. The LIT will send a copy of the plan to your creditors as well as file it with the Office of the Superintendent of Bankruptcy (OSB) once it is finished.
  • The proposal will be evaluated by your creditors for 45 days before they decide whether or not to accept it.
  • The plan will be approved if it has the support of the majority of your creditors (based on the total amount owing). If the proposal is turned down, you and your LIT can edit it and resubmit it for consideration.
  • You will start paying the LIT the amounts specified in the proposal if it is approved. The money will subsequently be distributed to your creditors by the LIT.
  • Also, during the duration of the proposal, you will be expected to attend two sessions of financial counseling.

 

Is a Consumer Proposal Right for You?

Anybody unable to make payments due to heavy debt may consider making a consumer proposal. Yet, you must consider carefully whether a consumer proposal is the best option for your situation. These are some things to think about:

 Debt Load

A consumer proposal often works best for borrowers who are drowning in debt and are unable to make payments. It can be more advantageous to look at alternative debt relief options if you don’t have a lot of debt.

 Monthly Income

You must earn enough each month to fulfill both your living expenses and the proposal’s payment schedule. A consumer proposal might not be your greatest alternative if your revenue is insufficient.

 Assets

A consumer proposal can be a smart choice if you have assets that you do not want to sell to pay off your obligations. Some debt relief choices, however, can be more suitable if you don’t have any assets.

 Credit Score

A consumer proposal will have a negative effect on your credit score, so you should decide if this is something you are concerned about.

 Eligibility

To be eligible for a consumer proposal, you must fulfill several requirements. You must look into alternative debt relief solutions if you do not match these requirements.

 

 

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Not sure where to start? Overwhelmed with all the information and stressed out with so many debts? Then, TALK TO US FIRST! 

It is BEST to know the Debt Relief Programs in Ontario so that you WILL KNOW YOUR OPTIONS. Get a FREE INITIAL CONSULTATION and understand the available options you have. We have a proven track record of excellent customer service that focuses on helping Canadians get a fresh start. 

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I was lost ... single mom... off due to Covid for 3 months .. did what it took to pay bills and look after my kids... and left with nothing but a tonne of debt I could not keep up with 😢. And then ....I met Connie.. Connie gave me my life back. The entire experience was like talking to my mother. She was full of compassion and knowledge and took me under her wing for this entire process. She turned tears into smiles and hope . She reassured me.. and made me feel like it was Going to be ok. I can’t thank her and the team (Paul) enough for helping me through this . I highly recommend National Debt Services to anyone looking for help with their debt . Start living again ❤️. Thanks Connie Jen
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I would just like to thank Suma for really making feel comfortable throughout this entire process. Everyone tells you to watch out for gimmicks, quick fixes, and everything else that comes with Debt. Ive had other companies who had made promises and under delivered. However Suma and her team are quick to provide the right answers and guide everyone in a way towards better credit. She has made it seamless with great communication and availability. I have personally referred her to several of my closest friends and i would recommend her to anyone else looking for consolidation.
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Top 5 Key Benefits of our Ontario Debt Relief Program:

To know more what you can benefit from our Ontario Debt Relief Program, simply try our Debt Consolidation Calculator below and one of our debt specialists will get in touch with you and provide you the best debt relief option that fits your situation.

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Frequently Asked Questions

A Debt Consolidation is a negotiated debt settlement offer made between you and your creditors with the help of a Debt Relief Agency in Ontario. Some key benefits of Debt Consolidation are interest-free program, no upfront fee required, combined monthly payment into one affordable amount, no lawsuits, and many more.

Yes, your assets are safe from creditors. A licensed debt relief agency in Ontario will help you come up with an offer to your creditors that will make sure your assets will be out of the paper.

No, in fact, this is one of the great advantages of a Debt Consolidation Program. All wage garnishment will stop from the day you filed the proposal.

The effect on your credit score is not going to be severe. Your credit score will most probably go to R7 Rating and will remain in your credit report for another 3 years after you completed the program. This means that it will not be permanent and you will still be able to rebuild your credit score.

 

This varies depending on the proposal you will be discussing with the help of a certified debt relief agency. It is also worth noting that debt consolidation cannot exceed more than 5 years.

If a debt is shared, you need to file a joint debt consolidation offer to your creditors. However, in most cases, in which the debts are individually incurred will have no impact on your spouse.

After three missed payments, your debt arrangement with creditors will be broken and you will end up getting chased again for the original debt amount plus interest.

A debt consolidation offer can be paid off earlier if you can. In this way, you receive your “Certificate of Completion” sooner and you can immediately start rebuilding your credit score. 

National Debt Relief Services Ontariois a certified Canadian Debt Relief Agency that offers FREE CONSULTATION to your debt consolidation needs. We value the trust given to us by our clients by making sure your personal information is confidential and private. Our personalized plans are designed to tailor fit your financial capacity. Our specialists will get in touch with you by simply answering a few questions thru the link provided below.

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I've been working with Allicia Macdonald shes very professional and sweet. I cant thank her enough for helping me rebuild my life. Thank you so much.
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Today I had a wonderful experience with Rachael, she was Very professional I was very happy with what we talked about today she was very Caring I highly recommend national debt relief services hundred percent😃
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Brittany was awesome, she explained everything clearly and offered solutions every step of the way. It’s always nice to hear that you could do this or that, I didn’t feel forced to do anything and was able to decide clearly. Thank you 🙏🏼
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This company will work with you and through any difficulties that may arise. They actually hold themselves accountable, how refreshing during troubling economic times.
marian kamara
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I have a great experience working with Suma, she work me through the program, takes her time to explain everything to me about how the program work, what I need to do from start to end of the process. I’m so thankful to God for sending an angel Suma to help relief my debt. It’s a great company to work with. I will recommend this program for anyone in debt like me.
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Connie B. was absolutely awesome! She explained everything in detail to me. Very professional to work with and takes the time with you. She really has compassion. So glad she helped me out. Thank you
lynn collins
lynn collins
18/09/2020
Joel has made this so simple and effortless he made sure i was well informed and making the right decisions for my situation i would recommend joel at national dept Relief to anyone in hardship with there bills thanks alot joel i really appreciate everything you have done for me thanks!! 5 stars for sure! and its chad ball not my mom lynn lol
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Amber-lyn Miller
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Let’s Just Put It Simple....... Not All Hero's Wear Caps........I spoke with Suma over a fairly lengthy period of time because of my busy schedule and lack of free time on my part, and she was not only extremely patient and understanding, but also beyond helpful And informative. Any question I had and no matter how many times she had to explain it to me she took her time to make sure I completely understood every single step and process before she moved on to the next thing. I have been so stressed out and worked up about my debt and trying to figure out how to fix it all since I know I will not be returning to work at all in the future because of medical issues and being 26 with that realization makes things just that more stressful but Suma made everything so easy and my payments are $100 a month for less then 5 years with no interest or penalties for early pay off. I’m so glad that I didn’t settle with some other place that was asking for $350 + a month for 7-12 years and paying off early would cost you more.
Jessica Preston
Jessica Preston
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Caroline F. was phenomenal, she was so helpful, understanding and compassionate. Caroline did not make me feel bad for my mistakes, she was supportive and caring, she helped me through this dark time in my life I'm so incredibly happy I crossed paths with her. Thank you Caroline for being so wonderful to me! <3

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