Proposals - Financial Planning's Best Kept Secret

	Consumer Proposals - Money Problems Radio Show (Opens in a new window. Optimized for Windows Media Player 6.4 and later versions.)
Originally aired on December 17, 2005.

Show Topic:

What can you do if you want to make payments to the people you owe money to, but you just don't have enough money to make the full payments each month? On today's show we discuss consumer proposals, a great way to deal with your money problems.

Guests:

Douglas Hoyes and Ted Michalos are the founders of Hoyes, Michalos & Associates Inc, one of Ontario's leading personal insolvency firms. They emphasize a "fresh start" when dealing with money problems, and file dozens of consumer proposals every month. They can be reached at www.hoyes.com or, in Ontario, at 310-PLAN (no area code required).

Show Summary:

Doug and Ted discussed consumer proposals.

A proposal is a legally binding deal made between you and your creditors, where you repay a portion of what you owe, over a period of time.

For example, if you owe $30,000 in credit cards and bank loans and can't afford to repay them in full immediately, your creditors may be willing to accept a proposal whereby you pay, say $300 per month for a period of three to five years, in full satisfaction of your debt.

The amount your creditors will be willing to accept will depend on your monthly income, the size of your family, and any assets you may own. We suggest you contact a licensed trustee today to determine if a proposal is right for you.

Question of the Week:

Q. I have a good job now, but I used my credit cards to survive when I was unemployed for three months. I now owe over $30,000 on my credit cards. Should I file a consumer proposal, or go bankrupt?

A. The answer depends on your family income, your assets, and the size of your family. If your income is low, and you have no assets, a personal bankruptcy may be the best option. However, if you have a good job and the ability to repay at least a portion of what you owe, a consumer proposal may be the best choice for you.

Don't let your Money Problems overwhelm you; contact a bankruptcy expert today for more information about consumer proposals.