Consumer proposals are great options for people who don't want to declare bankruptcy. You can agree to a consumer proposal Toronto with your creditor and legally file. This protects you from various debt collectors and will allow you to just pay the portion of your debt that you are able to. Your creditor will be a licensed bankruptcy trustee, so you can be sure to address all your debt woes with him or her.
Consumer proposals include a number of both benefits and limitations, all of which your creditor will explain to you. However, the bottom line is that you will only pay a specific portion of the debt, a number that you can afford. The great thing about this is that the amount of burden you originally had is somewhat relieved.
You have a maximum repayment period up to 5 years for the partial payment. Another good thing about the proposal is that once it is filed, debt collectors will stop calling, there won't be any more interest accumulating on the debts, and wage garnishments will stop immediately. Also, your assets and home are safe as well, seeing as this is different from bankruptcy.
As mentioned, your home and other assets are safe from collection, but they are also safe from temporary seizure from your creditor during the 5 years you make payments. Surplus income is also not a concern, which is the same as in bankruptcy filings. Another important factor to know is that your payment amount will never increase, even if you end up obtaining a higher income while you pay.
Bankruptcy filings give you a R9 rating, the lowest one you can get. Proposals such as this, on the other hand, give you R7 ratings, much better than bankruptcy. Therefore, it is best that you choose the latter option, as your credit score won't be as negatively affected.
You aren't the only one benefiting from this filing. Your creditors, while they aren't receiving the full debt amount, receive at least some portion. If you were to go bankrupt, they would not receive anything. Therefore, if you really are in a place where you can only pay a partial amount of your debts, the creditors welcome this alternative.
If your debts range between five thousand dollars to two hundred fifty thousand dollars, consumer proposals are a good solution for you. They would also be a good option for you if you have a stable job and are able to pay a small amount per month, or if you just can't seem to pay a total debt balance with the full interest. If you don't want to go bankrupt because you want to avoid the surplus income payments or can't obtain a debt consolidation loan because of a high debt balance, you can also file this proposal.
You will still be obligated to keep certain debts and regular payments. These include some student loans, alimony or family support, car loans, home mortgages, etc. Your creditors will provide you with information that will clearly state which debts are eligible to fall under a consumer proposal, as well as information on how to deal with these problems. Additionally, you should understand that you are not allowed to pick and choose the specific debts included in the partial payment.
Consumer proposals include a number of both benefits and limitations, all of which your creditor will explain to you. However, the bottom line is that you will only pay a specific portion of the debt, a number that you can afford. The great thing about this is that the amount of burden you originally had is somewhat relieved.
You have a maximum repayment period up to 5 years for the partial payment. Another good thing about the proposal is that once it is filed, debt collectors will stop calling, there won't be any more interest accumulating on the debts, and wage garnishments will stop immediately. Also, your assets and home are safe as well, seeing as this is different from bankruptcy.
As mentioned, your home and other assets are safe from collection, but they are also safe from temporary seizure from your creditor during the 5 years you make payments. Surplus income is also not a concern, which is the same as in bankruptcy filings. Another important factor to know is that your payment amount will never increase, even if you end up obtaining a higher income while you pay.
Bankruptcy filings give you a R9 rating, the lowest one you can get. Proposals such as this, on the other hand, give you R7 ratings, much better than bankruptcy. Therefore, it is best that you choose the latter option, as your credit score won't be as negatively affected.
You aren't the only one benefiting from this filing. Your creditors, while they aren't receiving the full debt amount, receive at least some portion. If you were to go bankrupt, they would not receive anything. Therefore, if you really are in a place where you can only pay a partial amount of your debts, the creditors welcome this alternative.
If your debts range between five thousand dollars to two hundred fifty thousand dollars, consumer proposals are a good solution for you. They would also be a good option for you if you have a stable job and are able to pay a small amount per month, or if you just can't seem to pay a total debt balance with the full interest. If you don't want to go bankrupt because you want to avoid the surplus income payments or can't obtain a debt consolidation loan because of a high debt balance, you can also file this proposal.
You will still be obligated to keep certain debts and regular payments. These include some student loans, alimony or family support, car loans, home mortgages, etc. Your creditors will provide you with information that will clearly state which debts are eligible to fall under a consumer proposal, as well as information on how to deal with these problems. Additionally, you should understand that you are not allowed to pick and choose the specific debts included in the partial payment.
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