Everything to Know about Consumer Proposals in Alberta
A consumer proposal in Alberta is a formal contract between you and your creditors that requires you to pay back a smaller portion of your debts within five years. Creditors frequently consent to such terms because they would rather get less money on a regular basis than have to wait interminably for complete payment that might never arrive. As a result, even if your income increases, your monthly payments remain the same or even decrease from what you would normally pay. Consumer Proposal vs. Filing for Bankruptcy As opposed to filing for bankruptcy, a consumer proposal does not require you to surrender your possessions or maybe make income excess payments. Consumer proposals and bankruptcy, however, have a lot in common. Both of these are public records that may damage your credit. Bankruptcy is reported on your credit report for six or seven years, but a consumer proposal is removed from your credit report three years after completion of the consumer proposal process . Once y...