Know the FAQs of Consumer Proposal for Debt Work

consumer proposal for debt

A consumer proposal is a non-bankruptcy option that allows you to combine your unsecured debt and repay all or part of it in monthly installments, lump sums, and interest-free amounts over a five-year period with the consumer proposal for debt.

A consumer proposal is a legally binding agreement that may only be made by a Licensed Insolvency Trustee (LIT). Your trustee will work with you to submit a proposal to your creditors, either to adjust your payments or to return only a portion of what you owe.

After then, your creditors will vote on whether or not to accept your offer. The amount you must pay is usually divided into monthly payments to your manager over a period of no more than five years in most plans. You can, however, pay in one lump amount or a mix of lump sum and monthly installments.


  1. What is a Consumer Proposal?

A Consumer Proposal is a one-of-a-kind debt solution that allows you to settle your debts for less than you owe by negotiating a "deal" with your creditors and consolidating your obligations into one monthly payment that you can afford. A Consumer Proposal is a debt management tool that can help you reduce and pay off debt without declaring bankruptcy.


  1. How Do the Consumer Proposals Work with Validation?

Consumer Proposals allow you to combine and pay off practically any sort of debt, including credit cards, overdrafts, payday loans, and lines of credit, as well as government obligations including school loans and Canada Revenue Agency tax arrears. Working with a Licensed Insolvency Trustee, you will agree to repay just the percentage of your total debt (including accrued interest) that you can afford, with your creditors forgiving (writing off) the remaining sum with the bankruptcy proposal in Canada.

bankruptcy proposal in Canada


  1. Why Should You Submit a Consumer Proposal?

A consumer proposal could be perfect for you if you're drowning in debt and don't know how to get out but don't want to declare bankruptcy.
Your debts are negotiated through a Licensed Insolvency Trustee in a consumer proposal - in other words, you have a mediator working for you to secure the best deal while being fair to your creditors with the consumer proposal for debt.

You can decrease your debt payments and pay on a set timetable with a consumer proposal. Your monthly payment will never increase. You'll also most likely maintain your secured assets (house and vehicle), which you may have lost in bankruptcy.


Final Thoughts

To manage the actual terms related to the consumer debt proposal, it is important to deal with the actual changes related to the management of debt works. Contacting Yourconsuer Proposal Alberta can help in managing the debt proposal easily.
Location: Edmonton, AB, Canada

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