Consumer Proposal: Legal way to get rid of debts
The number of Canadians crushed by the debt of credit card is increasing. Due to the poor financial status and increasing interest rates, it seems like you will never get out of this debt. You might be planning to save so that you can slowly pay the debt.
However, there are many legal alternatives you can use to repay your creditor. Consumer Proposal is one of the best ways that you can use to pay off the credit card debt.
It is an agreement that will help to settle the unsecured debts between the individuals and the creditor. You will have to hire the licensed bankruptcy lawyer. He will act as a mediator and will help you know whether you are a reliable candidate for the debt repayment or not.
In order to assure that creditor will accept the debt repayment proposal, the lawyer will finalize the deal between you and your creditor. The creditor will have the assurance that his money will be repaid. You will need some help from the experts to help you finalize the best consumer proposal for your creditor.
How Consumer Proposal works
You will need a licensed bankruptcy lawyer or trustee to help you file the consumer proposal. He will act as an administrator. The program is made available through the bankruptcy and insolvency act that was introduced by the government of Canada. It is the perfect alternative to bankruptcy. Here is how the consumer proposal will work.
- You will get an affordable repayment plan for the debt
- All the legal forms will be prepared by the experts, you will only have to sign
- With the government, you can file the proposal to the creditor
- Experts will talk to your creditor is a professional way
Reasons to file a consumer proposal
There might be many ways to have debt relief but the best solution has been provided in the form of consumer proposal. Your entire situation and issues will be presented and the trustee will help you find the best solution that will meet your requirements and financial status. If you are confused whether to file a consumer proposal or not here are a few reasons you should consider.
- It is reliable solution for individuals have a debt greater than $5000 but less than $275000
- You need more time for the repayments of the debts but the creditor does not agree
- You want to get rid of the threats of legal actions. Increasing interest charges and wage garnishing.
- Your house or other valuable belonging might be at the threat of being paid off as debt.
Advantages of consumer proposal
The biggest advantages of the consumer proposal are that your monthly debt payment will be lowered. The interest will be frozen which means that the debt will not increase. Your house and other belongings will stay with you. You will be able to easily pay off your debt without disturbing your financial status.