Avoid bankruptcy with a Consumer Proposal
Canadian Government Approved Program that allows you reduce your debt by up to 85%
- All interest charges are frozen. No more accumulating interest
- No more collection calls from harassing creditors
- Wage garnishments are stopped
- Your debt is rolled into one low affordable monthly payment
What is a Consumer Proposal?
A consumer proposal is a renegotiation of what you owe to your creditors, handled by Bromwich+Smith on your behalf. You pay what you can afford, instead of what your creditors were demanding. (Usually eliminating debt for only a percentage of original amount owed). Think of it as a settlement with those you owe on terms you both agree with.
Advantages of a Consumer Proposal
Provides immediate relief from your unmanageable debt
Settle your debt based on what you can afford, not what creditors were demanding.
Legally force creditors into the settlement, even if they don’t all agree
Unlike bankruptcy, a consumer proposal doesn't involve your assets or other possessions
Stops all creditor actions, including collection calls and wage garnishees.
Stop interest charges immediately
One affordable monthly payment, with up to 5 years to pay off the remainder of your debt
No additional fee payments from you, as we are paid by a government tariff
Payless with a consumer proposal
For example if your current debt owed is $55,000 the total cost you would have to pay over 5 years
Customer monthly repayments before and after debt help
Monthly payments are based on individual financial circumstances
How does a Consumer Proposal work?
Book A Call
During your free consultation, a Bromwich+Smith Debt Relief Specialist will work with you to establish the details of your current financial situation, including assets, liabilities, income and expenses.
Speak to a Licensed Debt Trustee
Next: If it is determined that a Consumer Proposal is the best option to relieve your debt, we will work within your budget to determine the terms of your proposal, and won’t proceed until you are comfortable with the terms.
Choose your plan
Once terms are accepted by you and the proposal is submitted, relief is in sight. Right away, your creditors must leave you alone. That means no more bothersome phone calls, no more garnished wages, and active lawsuits come to an end.
Note: As long as a proposal offers your creditors more then they would receive in a bankruptcy, they are usually accepted. Your creditors have a 45 day period after submission to request a meeting to vote on the terms of the proposal. If a meeting is requested by more than 25% of your creditors, a meeting will be called where creditors will vote to accept the current terms or amend the proposal to terms that are satisfactory to the majority of the creditors.
Consumer proposals can only be obtained through the help of a federally Licenced Insolvency Trustee like Bromwich+Smith.
Frequently Asked Questions
With a Consumer Proposal, you pay no professional fees. All costs of Bromwich+Smith are paid by the proposal funds, subject to a government mandated tariff. The amount you will offer in a proposal is tailor made and based upon your income, expenses, assets and who your creditors are.
Consumer proposals will remain on your credit report for three (3) years after you complete your proposal, OR six (6) years from the file date whichever comes first.
Creditors use these ratings to determine risk and to set your cost of borrowing. However, even while in a restructuring program, you can start to rebuild your credit right away, and Bromwich+Smith has the tools and resources to help you do so.
Consumer proposals are different from consolidation loans.
A consolidated loan does not have a negative impact on your credit rating, while a consumer proposal will. However, a consolidation loan will result in you paying back significantly more than the amount you are owing today because of the application of interest, whereas a Consumer Proposal typically allows you to pay back only a percentage of what you owe today, with no interest. Further, a consolidation loan will require that you pledge assets and/or obtain co-signers for the loan, while no such requirements are needed for a Consumer Proposal
Please don’t do this. One of the most important principles of bankruptcy and insolvency legislation is the control and distribution of your assets for the fair treatment of your creditors.
Doing this adds unnecessary stress and time to the process. If you give away your assets or sell them for less than fair market value, your creditors can reclaim them through a court order. Speak with one of our debt relief specialists today and see how we can help protect your property through the filing of a consumer proposal or bankruptcy.
Once your consumer proposal is accepted by your creditors, your payments remain the same and your creditors cannot demand more. Your original settlement amount is protected.
You can and will qualify for best rates and terms even after filing into a consumer proposal. The key is to rebuild your credit during your consumer proposal.
As Canadians, not only do we have an exit strategy from the overwhelming burden of debt build into our legislation, all Canadian’s assets are legally protected. There is an impact to your credit report, it will hinder your ability to be the director of a company and it can impact your emotional and mental well-being.
It’s tough to function in society these days without a vehicle. One reason Canadians do not reach out for debt help early enough is the myth that they will lose their vehicle or not be able to buy or finance another vehicle which is a necessity. The good news is, you actually can purchase a vehicle if you file a consumer proposal and sometimes, it actually makes it easier to qualify.
Bankruptcy truly is the last resort and, although it’s not quite like the game Monopoly – where if you go bankrupt the game is over – it still has a negative impact on your credit report and your ability to function in a credit based society. Avoiding bankruptcy is the ideal and there is an excellent alternative to bankruptcy, that most Canadians are not aware of or do not fully understand. That alternative is Consumer Proposal. A consumer proposal is less damaging to your credit report, allows you to build credit during the proposal period, keep all your assets and stick to a budget that gives you some breathing room.
As a business owner, there are three key questions you need to answer; 1. Can my business weather the storm? 2. Can my business pivot? 3. What if I need to close my business? The worst-case scenario is that you will be forced to close your business and if that is the case, you want to know your options, rights and ability to build a business again. For more information click here
Consumer proposals do not affect vehicle ownership. You will keep your vehicles and continue to make payments, if any.
There is no limit to the number of times you can file a consumer proposal. Unlike a bankruptcy. If you file a second bankruptcy, your discharge takes longer and may cost more and if you file a third bankruptcy you would need to go to court to apply for a discharge. With each consumer proposal, your success is based on your creditor’s acceptance of the proposal.
Each consumer proposal is the same, it is always based on your ability to pay. There is no additional fee for a 2nd or 3rd consumer proposal.
Unfortunately, you cannot file two consumer proposals simultaneously. You would need to complete your first consumer proposal and, if after completion you need help with new debts, you can file another consumer proposal. If that debt is too high for you to continue your current consumer proposal payments, you have the option to collapse or amend your consumer proposal and file another insolvency.
Put a stop to creditor actions & eliminate debt today
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