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.

Join the Conversation

Leave a Reply

Your email address will not be published. Required fields are marked *

13 − 11 =