Guest Commentary by Wendy Young, Consumer Proposal Administrator, Hamilton, Ontario.
I meet with many people each day in our Hamilton consumer proposal and bankruptcy office, and they want to avoid bankruptcy, but they aren’t sure why a consumer proposal is often a better alternative. Here are some of the advantages I list for them:
- You’ve done the best you could, offered to pay back a portion of your debts and your creditors have accepted your offer
- You don’t have that guilty feeling that some experience when filing a bankruptcy
- You don’t need to report your income every month to your trustee
- Your income can increase over time but your payment will always stays the same
- You can pay off a proposal at any time with no penalties to finishing it sooner
- You get to keep your tax refunds
A consumer proposal can be a great debt consolidation alternative if you have a stable income but can’t afford to repay all of what you owe. It is the #1 alternative to filing bankruptcy and still receive protection from your creditors.
When I meet with someone experiencing financial difficulties, I tell them they have several debt relief options before bankruptcy. A consumer proposal might be good for some people, but not everyone. To find out what options will work for you, contact a trustee in your area for a free, initial consultation.