Licensed Insolvency Trustees Who Speak Your Language
If you are in need of an alternative to declaring personal bankruptcy you can file a consumer proposal.
A consumer proposal is an agreement with creditors, outlining the percentage of the debt you owe them and allowing you to extend the amount of time you can pay back this debt.
The payments are made through the Licensed Insolvency Trust (LIT) which will pay the creditors on your behalf.
A consumer proposal as an alternative to bankruptcy is one of the most efficient and safe ways to consolidate debt.
There are many benefits of submitting a consumer proposal:
A consumer proposal can be incredibly useful because it can help to eliminate a large portion of your unsecured debts. These debts may include:
Consumer proposals only deal with unsecured creditors, meaning all secured loans must be handled separately. This means it does not affect debts such as your mortgage on your place of residence or your car loan.
In Canada, consumer proposals are federally regulated. In order to be eligible, you must meet the following criteria:
Harris & Partners Inc. can help you file a Division 1 proposal. Don’t wait! There is no reason to lose your house or car unless you wish to give them up. As an LIT, we can help you formulate an agreement that works for both you and creditors.
Here are the steps to filing a consumer proposal:
If you’re wondering how long your consumer proposal will last, it typically cannot last for longer than five years. Yet, it’s important to keep in mind that the exact length depends on the type of proposal that you submit.
If you choose to, you are able to pay off your consumer proposal early. It will also be a relief to learn that you can pay it off early without the risk of penalties.
A consumer proposal will affect your credit rating in the short-term but in the long-term (after completing the consumer proposal from start to finish) you may see an improved credit score rating. If you are approved for a consumer proposal, it will stay on your credit report 3 years after you’ve paid off your debts or 6 years from the day the consumer proposal was filed (whichever comes first).
Getting out of debt will make you feel free and will help you start your journey of having a better credit rating overall.
Don’t wait for your debts, penalties and interest charges to increase. For most, the first step onto the path toward a debt-free life involves filing a consumer proposal. With fewer, less expensive payments, consumer proposals are a less stressful way to face your debts head-on.
Harris & Partners Inc. is your go-to source for for debt help in Toronto and Southern Ontario. We have conveniently accessible locations throughout the Markham, Barrie, Brantford, Hamilton, Kitchener, Oshawa, Pickering, St. Catharine’s, Brampton, Toronto and North York areas. We are determined to use our expertise to help you live debt-free. Get in touch with a member of our team today!