Consumer proposal is a legal process that you can use to negotiate deals with your creditors. This is an option provided in the Bankruptcy Act. In fact, this is an excellent way to avoid bankruptcy and the significant lending repercussions that come with filing for bankruptcy.
Advice is often a good way to deal with the debt of someone who:
- Don't want to file bankruptcy
- Have filed for bankruptcy in the past
- Have sufficient income to make partial payments to their creditors but are unable to pay the full payments, or
- You want to escape the revolving door with great interest, but you cannot qualify for a consolidation loan.
To get more information about the best consumer proposal visit https://www.empireonecredit.com/ontario/toronto/consumer-proposal/.
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What are the benefits of submitting consumer proposals?
The proposal offers a number of benefits that can help relieve a lot of debt stress. Some of the main advantages of submitting a proposal are as follows:
Creditor protection – from the moment the proposal is submitted, there will be an automatic production stop which will take effect. This immediately eliminates the ability of your unsecured creditors to collect wages, confiscate assets, sue you, or sue you for outstanding debt, including harassment of phone calls.
Interest-Free – When you make your bid, your creditors cannot charge any additional interest or penalties related to the funds stated in the bid.
Regular monthly payments – every month you are responsible for paying your trustee. This is the only payment you must make, and your trustee distributes these funds to your creditors every six months. Plus, our fees are calculated from this payment, so you won't be surprised by any unexpected administration fees.