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Navigating Debt Relief – Consumer Proposal Surrey

Consumer Proposal Surrey

Are you consumed by debt and looking for a way to regain control of your finances? A Consumer Proposal could be the answer you’re looking for. With a Consumer Proposal, you can reduce the debt you owe, extend the time you have to repay your debt and gain protection from your creditors. 

If you’re considering a Consumer Proposal in Surrey or want to learn more about the debt help available, reach out to a Licensed Insolvency Trustee (LIT) at Allan Marshall & Associates today.

What is a Consumer Proposal?

A Consumer Proposal is a legal process that can only be administered by a Licensed Insolvency Trustee in Canada. In a proposal, you and your LIT work together to create an offer to pay your creditors a percentage of what you owe, extend the time you have to pay, or both. The length of a Consumer Proposal can not exceed five years. 

Who Should File For a Consumer Proposal?

When you meet with an LIT they will assess your financial situation to help you determine if a Consumer Proposal is the right debt solution. They can also confirm if you meet the eligibility requirements for a Consumer Proposal, which include: 

  • You are an individual, not a corporation 
  • Your total debts don’t exceed $250,000 (excluding mortgage debt on your primary residence)

What Do You Have to Do in a Consumer Debt Proposal?

When you file a Consumer Proposal, there are certain responsibilities you have to fulfill which include: 

  • Providing your LIT with a list of all of your assets and debts
  • Attending two counselling sessions
  • Informing your LIT in writing if your address changes
  • Assisting your LIT in administering the Proposal process

What Debts Are Included in Consumer Proposals?

A Consumer Proposal will not eliminate all of your debt, but it will get rid of most of your unsecured debts, including: 

  • Credit Cards
  • Personal loans
  • Payday loans
  • Tax debts
  • Lines of credit 
  • Student loans (if they are more than seven years old) 

Secured debts such as your mortgage, car loan, and secured credit cards are not included in a Consumer Proposal. 

Will a Consumer Proposal Impact Your Credit Score?

Filing for a Consumer Proposal will impact your credit score. Typically, you are assigned the lowest possible credit score. This can affect your ability to borrow credit. A Consumer Proposal will stay on your credit report for up to six years after signing your Proposal. 

What Are The Benefits of a Consumer Proposal?

While entering into a Consumer Proposal might feel intimidating, there are a lot of benefits, including: 

  • You only pay a portion of your debt payments
  • Creates affordable payments
  • Provides additional time to repay your debt
  • Can eliminate interest charges 
  • Stops wage garnishment and creditor lawsuits
  • Can help you get out of debt and build a new financial future 

Alternative Debt Solutions 

If you aren’t eligible for a Consumer Proposal in Surrey or you and your LIT decide it’s not the right fit, there are other debt help options.

Credit Counselling Surrey

The purpose of credit counselling is to help individuals struggling with debt improve their financial knowledge and skills. A credit counsellor can help you address your debts, teach you how to create a budget and assist you in creating a plan to achieve financial goals.

Debt Consolidation Surrey

Debt consolidation is the process of combining multiple debts into one monthly payment. The purpose of debt consolidation is to simplify the debt repayment process. Rather than trying to remember multiple payment deadlines with different terms, you can focus on one monthly payment.

Bankruptcy Surrey

Personal Bankruptcy is a legal process in which you can be discharged from most of your unsecured debts. The purpose of a Bankruptcy is to provide honest Canadians who are down on their luck with a fresh financial start. An LIT is the only professional in Canada that can administer a Bankruptcy proceeding. 

Consumer Proposal Surrey – Get The Financial Support You Need

If you’re ready to deal with your debt, reach out to a Licensed Insolvency Trustee to learn more about your options. An LIT can tell you if you’re eligible for a Consumer Proposal in Surrey and answer any questions you have about the process. 

You don’t have to deal with your debt alone. To book a free, no-obligation consultation, give us a call at 1-888-371-8900 or fill in our online contact form.

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