The Top 4 Advantages of a Consumer Proposal Over Other Debt Relief Solutions

2014-11-28

Frederic Lachance

When a person in debt is trying to solve their money problems, they first have to make a choice of which debt solution they should use. We saw in a previous blog that there are different options available: debt consolidation loan, voluntary deposit (in Quebec), bankruptcy and Consumer Proposals.

The Consumer Proposal, which is the equivalent of a Chapter 13 bankruptcy procedure in the U.S., is the solution that has the most advantages. These include:

  1. Your credit will be impacted for a shorter period of time. In comparison to a bankruptcy or voluntary deposit, a Consumer Proposal will only be on your credit record for three years.
  2. You will be able to keep your otherwise seizable assets.
  3. Your accepted proposal terms will not change. The agreement will remain the same, even if there are changes in your salary or revenues.
  4. You will save more money. Compared to a debt consolidation loan or a voluntary deposit plan, you will achieve more savings in terms of the total amounts paid to creditors.

These are only a few of the many advantages of a Consumer Proposal over other debt options. If you need more information, please contact one of MNP Ltd.’s debt advisors in your region.