Consumer Proposals are rapidly becoming a popular alternative to bankruptcy in Canada. In this video, Doug Hoyes and Ted Michalos of Hoyes, Michalos and Associates Licensed Insolvency Trustees explain what you need to qualify for a Consumer Proposal. Doug explains that consumer proposals are arrangements where you make monthly payments to your creditors. Creditors often opt for this route because they get more money back than they would in a bankruptcy. He uses an example of a person with $40,000 worth of debt in a consumer proposal situation and a somrone just trying to pay off their debts on their own or using a debt settlement company. However, not any debtor can qualify for a consumer proposal. You have to be in some sort of financial distress and physically lack the ability to pay down your debts - which is why you propose a lower amount. Ted explains that a drawback of a consumer proposal is that it will stay on your credit report for 3 years after it is paid off. However, if you're not paying your debts and letting them go to collections, your credit report is already worse than it would be with a consumer proposal. That's why its better than just turning a blind eye to the debt and letting it accumulate. Ted and Doug explain that a consumer proposal is not a cure-all for everyone. At Hoyes, Michalos and Associates, the trustees review all of your debt options and recommend the best route for you. Further criteria for a consumer proposal are: you need to owe more than what you own. Your unsecured debt may not exceed $250,000 (not including mortgages). Consumer proposals are legally binding because your creditors are not allowed to change their minds after the 45-day "stay" period.

#consumerproposal #debt #debtfree #debtfreecommunity #LicensedInsolvencyTrustee

свернуть