Consumer Proposal

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Consumer Proposal

A consumer proposal is a formal, legally binding process that consists of an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both.

Advantages of a Consumer Proposal:

  • You are able to retain your assets (vehicle, home, investments, pensions, etc.).
  • A portion of your debts can be forgiven (discharged)
  • It protects you from legal action (collection action and garnishees)
  • No interest while in a proposal
  • A Consumer Proposal can be up to 5 years in length and can be paid off early with no penalty
  • All unsecured creditors are legally required to participate
  • Potential for less impact on your credit rating than a Bankruptcy (3 years after completion versus 7 years after discharge)

Disadvantages of Consumer Proposal:

  • Negatively affects your credit and the record of a consumer proposal stays on your credit report for 3 years after you’ve completed your proposal
  • A proposal can be annulled and your debts will return (plus interest) if you are ever 3 payments in arrears

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Debt Relief Canada provides individuals across Canada with solutions to reduce and eliminate debt.
Contact us for a free, no obligation consultation.
Toll Free: 1.855.305.9940

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