Expert Mortgage Brokers | Orangeville Consumer Proposal
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Orangeville Consumer Proposal

Orangeville Consumer Proposal

In Canada, 118,050 people filed either Bankruptcy or Consumer Proposal in 2014. A Consumer Proposal is an alternative option rather than filing for bankruptcy. When you face uncertainty in your job, and you’re simply unable to pay your creditors from whom you borrowed money, debt and interest continue to acrue. Now, you’re faced with trying to buy more time to organize your finances. In Orangeville and as well in other parts of Canada, people who cannot pay all of their debt off due to their present situation, the Consumer Proposal is quite often the best option. A Consumer Proposal is a fair and stress-free solution for paying off your debt. It is a legal option that allows you to negotiate a settlement between you and your creditors to repay part of what you owe.

Procedure of Consumer Proposal

Your Trustee will file your Orangeville Consumer proposal with the court. He or she will send the notice to all of your creditors. After that, your creditors will have a deadline of 45 days to consider the offer the trustee has made them. Through the 45 days, you do not have to make any payment to your creditors, and they are unable to take any action of collecting anything from you. The report will be filed by your trustee, which will show your case, reasons for your financial hardships, and an overview of your assets, your creditors and your debt.

Advantages of Consumer Proposal

• You will be free to make your financial decisions.
• A Consumer Proposal will allow you to negotiate with creditors, instead of having to pay the full amount that you owe.
• You will make the monthly payments to your trustee. You can also make bigger lump sum payments if you can make an arrangement.
• You will not have to face disturbing, harassing calls from your creditors or collection agencies after making a consumer proposal. No further action will be taken against you from your creditors, or third party collectors.
• You won’t have to pay interest on your debt anymore.
• You will be able to keep your car and home.
• A consumer proposal in Orangeville is a great way to gather a number of unsecured debts into one low monthly payment. It will also give you a chance to get out of debt faster.
• A Consumer Proposal can be a good alternative if you do not want to file bankruptcy.

Disadvantages of Consumer Proposal

• When you go for Consumer Proposal option, you might need to sell some of your assets.
• You must make your payments as arranged otherwise it could put the settlement into jeopardy and make the agreement null and void.
• There are fees to file a Consumer Proposal in Orangeville.
• You will not be able to file another proposal if you default on your proposal.
• Your trustee will need to convince your creditors to accept your proposal.
• Only non-secured debt can be put into a proposal. Secured debt cannot.
• Student loans less than seven-year-old may not be included.