Should I Consider a Consumer Proposal to Solve My Money Problems?

A consumer proposal is a formal legal settlement of your debts, negotiated between you and your creditors, and then approved by the court. Consumer proposals are a great solution to your money problems, but only in certain circumstances.

First, you must be a resident of Canada, or have Canadian debts. You may be eligible to file a proposal if your unsecured debts are between $10,000 and $250,000.

Second, you must have the ability to make payments to your creditors as part of your consumer debt proposal, either as a lump sum, or more typically as monthly payments for a period of up to five years.

Third, you must have a licensed trustee to act as the administrator of your proposal. When you contact a proposal trustee, arrange for a no charge consultation, and ask them to explain how much a consumer proposal will cost, and what the chances are of acceptance by your creditors, so you can determine if that is the correct option for you.

Category: Consumer Proposals |

Oct 24, 2006

About J. Douglas Hoyes

J. Douglas Hoyes, BA, CA, CPA, CBV, CIRP is a Licensed Insolvency Trustee and the co-founder of Hoyes, Michalos & Associates Inc., one of Canada's largest independent personal insolvency firms. As an expert in debt management, Doug has been helping people deal with debt for more than 20 years.

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