Consumer proposal is the best option to avoid bankruptcy. This video is answering the most important FAQ for Consumer Proposal. More info can be found at [ Ссылка ]
Hello. I'm Andy Fisher. I'm a partner with Alan Farber and Partners. We are federally licensed Administrators for consumer proposals. I have with me Saud and Drew. They have a number of questions that we frequently get asked about a consumer proposal. I hope that by answering these questions, you get a better understanding about it works.
1. Do all of my creditors have to agree to my consumer proposal?
a. No. if a simple majority accepts the proposal, it is legal binding on all of your creditors. In other forms of debt settlements you usually have to deal with each creditor separately. This is time consuming and unless they all agree you may not be able to fully reduce or eliminate your debts
2. Why would creditors accept my consumer proposal that will significantly reduce my debts?
a. The creditors are going to see that you don't have the assets that you can sell to pay your debts in full. They are going to see that you do not have the cash flow to pay your debts in full. As long as a consumer proposal offers the creditors more then they would receive in a bankruptcy, and as long it offers a certain percentage of your debts -- usually around 30% - then generally the creditors accept your consumer proposal.
3. Do I have to pay any interest?
a. No. There is no interest on your payments.
4. What about fees...how much will this cost
a. There are no additional fees or costs to file a consumer proposal. Your first consultation is free and once the proposal has been filed and accepted, the costs are included in the one monthly payment that you make.
5. Will my creditors be able to garnishee my wages or seize any of my assets
a. No. A consumer proposal will stop any legal action and it will protect your assets. You can keep your house, vehicle and all of your assets.
6. How will my privacy be protected... will my family and my employer find out about this
a. The fact that you have filed a consumer proposal will not be advertised and will not be published in the newspaper. The only people who are notified are your creditors, Canada Revenue Agency and the government agency that regulates the process.
7. I've heard that in these situations I may have to go to court
a. No, you do not have to appear in court and in fact once you file your consumer proposal with A. Farber & Partners, we will deal with your creditors. All you need to do is to make your monthly proposal payments
8. I've heard advertisements from Debt Counselors offering the same kind of option, why would I not consider them?
a. A Consumer Proposal is governed by a federal law. Under this law only a federally licensed Administrator to a Consumer Proposal Administrator, such as A. Farber & Partners, can offer this solution to you. So Accountants, Lawyers, Credit Counselors and Debt Consultants cannot offer you this option
9. What about the impact on my credit score
a. A proposal is on record with the credit bureau for 3 years after it is completed. But for most people, unless they are going to win the lottery, it is the fastest way to improve their credit and become debt free.
Summary: If you're in financial difficulty you come to see Alan Farber & Partners, we will: review your situation to determine whether a consumer proposal is the right solution for you. If it is, once you've signed the paperwork you'll get the relief from your creditors that you are looking for. You will normally pay off about 30% of your total debts. Then you can start the process of rebuilding your financial future.
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