The Consumer proposal, An alternative to Bankruptcy

Bankruptcy is not always the only answer . An alternative might be to make a consumer proposal as defined in the Bankruptcy Act. The consumer proposal is an offer to your creditors to reduce the amount of money that you owe or to extend the period of time you have to pay your debts. Many times creditors recognize that they will receive more if they allow you ample time for payment or if they agree to take a reduced amount in respect of their debt.

The consumer proposal is presented to the creditors under the Bankruptcy Act through the auspices of  bankruptcy trustees. The proposal details the amount that you can pay, and the timing of the payments that you will make.

Some of the advanges of filing a consumer proposal include the fact that you avoid the stigma of bankruptcy, you keep all your property in your own name, and there are no more interest charges on the debt. Your monthly cash flow available for living expenses increases . All creditor harrassment stops and your life is much less stressful.

Not everyone can file and successfully complete a consumer proposal. You must meet certain financial criteria and complete the conditions required of you during the proposal period. A successful completion allows you avoid bankruptcy and maintain your assets.

Call us to arrange for a free confidential initial consultation to see if you qualify for this approach.