You Are Facing Financial Problems Is A Consumer Proposal For You

For individuals who are facing debt problems - such as difficulty meeting all payment obligations, juggling bills or “borrowing from Peter to pay Paul - a Consumer Proposal is an alternative to bankruptcy when there is an ability to repay a portion - and in some cases all - of the debt. Imagine that you are struggling to pay the minimum monthly payment obligations to a number of creditors. You know it would be easier if you could just have one monthly payment. Perhaps you try to obtain a consolidation loan. But what if the bank turns you down for the consolidation loan? A Consumer Proposal is a formal alternative to bankruptcy that falls under the provisions of the Bankruptcy and Insolvency Act. Under a Consumer Proposal, individuals can settle or repay their unsecured debts on reasonable terms with no interest. Moreover, individuals receive creditor protection during the term of the Consumer Proposal, meaning that creditors cannot take any further action to collect the debt. Specifically, payment to the creditors stop, collection calls stop, wage garnishment and other legal actions stop. A Consumer Proposal must be filed through a Trustee in Bankruptcy, whose job is to conduct an assessment of the individual; prepare necessary paperwork; help formulate the Consumer Proposal; report to and notify the creditors of the Consumer Proposal filing; monitor, receive and distribute payments under the Consumer Proposal; and provide two mandatory financial counselling sessions. There is no specific formula for determining the amount payable under a Consumer Proposal. In formulating the terms of the Consumer Proposal, consideration is given to your income and expenses, family situation, number and nature of creditors, and other relevant factors. A Trustee has the experience to assist you in making a Consumer Proposal that will be acceptable to your creditors, as well as reasonable for you to be able to fulfill its terms. How do I know if I am a candidate for a Consumer Proposal? You should talk to a Trustee about whether a Consumer Proposal is right for you if any of the following apply:·You are struggling to meet your existing payments to creditors; ·You are feeling stressed out about your debt, and feel like you’ll never get ahead; ·You have been turned down for a consolidation loan; ·You have resources (income and/or assets) to dedicate to the Consumer Proposal, or access to third party funds for a lump-sum Consumer Proposal; and/or ·You want to avoid bankruptcy. For more information on Consumer Proposals and other options, and to book a free, confidential consultation, please contact an MNP Trustee in your area. Regards, Lana Gilbertson - MNP Vancouver 604 637 1599