My only question and I'm hearing a few mixed things about consumer proposals
After 3 years when its fully paid off. Does the it completely come off your credit bureau? All your debts you put into it?
I'd like that info before I proceed.
Consumer Proposal: An Alternative to Bankruptcy
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Considering bankruptcy? A consumer proposal may be a better option
Financial trouble isn’t something that most people expect. After all, people generally follow the same trajectory in life: get a job and make money to provide the life you want for yourself and your family.
While nobody plans to have money troubles, life happens. There are many circumstances you may find yourself in that are out of your control, like job loss or loss of income, injury, and illness. We know that 70% of situations that cause financial trouble are unforeseen and often not planned for. So what can you do to overcome financial stress when you’re in over your head? There an alternative to bankruptcy you may have overlooked.
Consumer Proposal: Another Way to Start Again
Bankruptcy is the number one way to get rid of debt when it becomes insurmountable. But, bankruptcy isn’t the only option – and sometimes, it’s not the best option. While considering bankruptcy can eliminate debt and give you a fresh start, it has a negative impact on your credit rating, it can delay your ability to obtain future credit, and you may be required to potentially surrenderassets, and more. So how can you avoid bankruptcy to eliminate debt? Is there a real bankruptcy alternative? The answer: Yes. It’s a Consumer proposal.
Why a Consumer Proposal May Work For You
A consumer proposal is an alternative to bankruptcy. It’s a solution that involves renegotiating what you owe to your creditors, handled by Licensed Insolvency Trustees on your behalf.
Think of it as a single negotiated settlement between you and your creditors on terms you both agree on. All creditor action including collection calls and interest charges are stopped, giving you immediate peace of mind again.
Consumer proposal is simple: You pay what you can afford in monthly payments with up to five years to pay, instead of what your creditors were demanding. This locked in amount allows you to know exactly what is owed so you can make manageable payments and get on with your life.
Consumer proposals can only be obtained through the help of a Federally Licenced Insolvency Trustee like Bromwich+Smith, and this service is paid by a government tariff. They remain on your credit for three years after you complete your proposal, instead of the six years that comes with a completed bankruptcy, and there are many ways to rebuild your credit through this process.
What to Expect With a Consumer Proposal
The process starts with a free consultation to establish the details of your current financial situation in order to work within your budget to determine the terms of a consumer proposal. Once terms are accepted by you and the proposal is submitted, relief is in sight. Creditors will then vote to accept the current terms or amend the proposal to terms that are satisfactory for the majority. As long as a proposal offers your creditors more than they would receive in a bankruptcy, they are usually accepted.
Is a Consumer Proposal Right For You?
If you can identify with any of the following, a consumer proposal might be the right alternative to bankruptcy: Consider this route if you:
- Have experienced a loss of income due to job loss, sickness or injury
- Are only able to make minimum payments or unable to make any payments
- Have maxed out your borrow-potential and can’t get more credit
- Rely on credit for everyday expenses
- Can’t afford interest payments
While all cases are unique, a debt relief specialist can assess your financial situation over a confidential, nonjudgmental and unbiased no obligation free consultation to recommended which debt relief solution may be best for your unique situation.
Life after consumer proposal can be stress-free and fullfilling. Let us lead the way!
Contact us today with questions or to book your consultation.
We’ll find the right solution for you and get you back on track to rebuilding your worth.
By Taz Rajan Community Engagement Partner at Bromwich+Smith
Taz has been in the finance industry for nearly 2 decades and has always been passionate about education and empowerment. Having declared bankruptcy herself, she intimately understands the shame, stigma surrounding matters of debt as well as the joy and relief that comes from restructuring. Taz actively works to normalize the conversation of debt through blogs, media interviews, webinars, lunch & learns and through building relationship.
I want a professional agent to coach me toward debt repayment
Member for2 years 6 months
Hi Warren, we can help!
Please take advantage of our Free Consultation. During your consultation, you will talk to one of our Debt Relief Specialists who will look at the details of your financial situation with you. Using these details, our specialist will go over the options available to you and recommend whether one of our restructuring programs would be best for your situation or recommend other programs available from our partners in the community.
You can schedule you Free Consultation here: https://www.bromwichandsmith.com/contact-us