Three Advantages Of Filing For A Consumer Proposal Vs A Bankruptcy

The bills are piling up. You’re constantly getting calls from creditors. You borrow money from friends and family but it doesn’t seem to be helping. You know that you need to do something, but …..what exactly do you do? You don’t want to file a bankruptcy and wonder if there are other options. Guess what? There are several alternative options. One great option is to file a Consumer Proposal. There are a multitude of benefits of filing for aconsumer proposal rather than a bankruptcy. To start with, here’s a list of the top three:Fixed and Lower Payments - The payments on the Consumer Proposal can be set at the same amount each month for the entire period of the proposal. That allows for more stability and ease in budgeting each month. A lower payment is often achieved because the proposal laws allow a consumer proposal to be paid for a period of up to five years. By spreading out the total funds offered over a longer period of time, you are able to reduce each month’s payment and manage your debt obligations while also keeping with the costs of day-to-day expenses.Stops Interest & Penalties – Once a Consumer Proposal has been filed with a Licensed Insolvency Trustee, the interest charged by the creditor ceases to apply. With the balance finalized, it will allow both you and the creditor to have a better understanding of what the creditors will receive as dividends and what you may want to offer.Retain Control of Assets – In the case of a bankruptcy, until the date that a person is discharged from their bankruptcy, any assets that they acquire become property of the bankrupt estate, though there are a few exemptions. For example, if a bankrupt individual inherits money during a bankruptcy, that individual would need to pay all funds into the estate to the maximum of 100% of the debt, interest to the creditors and administration costs. A Consumer Proposal has different legislation. If the same individual had filed a proposal, those funds would be retained by the debtor. The debtor would then have the ability to pay their proposal early or continue to make the agreed upon payments. Depending on your unique situation, there might be other debt solutions available to you as well, like debt consolidation, Orderly Payment of Debts or an Informal Debt Settlement. Contact your local Licensed Insolvency Trustee for a free, no-obligation consultation. Together you will be able to assess your personal situation and choose which debt solution route is most viable to your financial needs. A fresh financial start is achievable, it’s just a matter of how you’re going to get there! Sandra Landry is a Licenced Insolvency Trustees within our Edmonton. To learn more about how MNP Debt can help you, contact any of our local offices at: Edmonton (Downtown) 10235 101St N.W., Suite 1300, Edmonton, AB, T5J 3G1 T: 780.455.1155 F: 780.409.5415 Edmonton (North) 13620 97 Street NW, Rosslyn Inn & Suites, Edmonton, AB, T5E 4E2 T: 780.455.1155 F: 780.409.5415 North East Edmonton 12904 - 54 Street, Edmonton, AB, T5A 0A4 T: 780.455.1155 F: 780.409.5415 Edmonton (South) 9426 51 Avenue NW, Suite 201, Edmonton, AB, T6E 5A6 T: 780.455.1155 F: 780.409.5415 Edmonton (West) 200, Quikcard Centre 17010 - 103 Ave, Edmonton, AB, T5S 1K7 T: 780.455.1155 F: 780.409.5415 ​ ​​