A Consumer Proposal is an agreement between an individual and their creditors to do something (usually make a payment) in exchange for the creditors stopping interest, stopping collection action, phone calls, letters and forgiving any unpaid debts. It is a legal process available under the Bankruptcy and Insolvency Act of Canada as an alternative to an individual needing to file for bankruptcy. Upon the acceptance of a Consumer Proposal it becomes legally binding upon all unsecured creditors.
What happens if your circumstances change or you change your mind? Can you withdraw or cancel your Consumer Proposal? This podcast answers these questions.
Basically, a Consumer Proposal is a plan to pay creditors a portion of the debts owed over a period of time. Payments are usually made monthly and as long as a proposal is in good standing, creditors are prevented from charging interest or taking legal / collection actions.
Allan Marshall & Associates Inc knows individuals want to pay their debts but sometimes circumstances don’t allow you to pay what is due. A Consumer Proposal allows you to pay what you can afford regardless of the amounts due.
Unlike many “Debt Settlement” programs being advertised, a Consumer Proposal accepted by your creditors provides a legally binding agreement where you will know exactly what you will be required to repay to creditors and at what rate before you start making any payments.
For more information or to schedule a free confidential consultation please contact Allan Marshall & Associates Inc.