What Is Consumer Proposal And Who Can File It?

By Author: James Edward
Total Articles: 4
Comment this article

Basically, a consumer proposal is a contract that’s negotiated with your creditors on your behalf, by a consumer proposal administrator (also called a

href="http://consumerproposals.com/">bankruptcy trustee). A legally binding agreement is put in place to arrange for a partial repayment of your total unsecured

debt owing. You’ll pay portion of what you owe, and your creditors will agree to ignore the balance owing.

If you would like information about consumer proposals , your first step is to contact a proposal administrator. He or she

will discuss with you the benefits of submitting a proposal, your responsibilities, and determine if you could qualify. There’s no need to hesitate; very often your

first appointment costs you nothing, and you’ll walk away with trusted advice from a professional the area of personal debt reduction.

Eligibility Requirements

After an initial talk with your trustee, he or she will be able to tell you right away if you would be eligible to submit a consumer proposal. To summarize the
...
... requirements:

• You must be insolvent (in other words, you must have more debts than assets, or be unable to meet your obligations as they come due)
• You unsecured debt must be between $1000 and $250,000 (not including a mortgage on your principal residence)
• You must have the ability to make monthly payments (reliably employed)

Remember that with consumer proposals, you are repaying only a portion of your debt. The administrator’s role is to negotiate with your creditors on your behalf, to

come to an amount that’s acceptable to both parties. As long as the majority of the creditors (in dollar value owing) agree to accept your proposal, it will become a

legal contract including all creditors listed.

In some cases, once you’ve committed to a proposal with your unsecured creditors, you may find it best to reassess your overall financial picture, focusing on the

secured loans next. Can you manage to live comfortably while still keeping these payments up to date? If you’re having doubts, it’s a very smart idea to discuss this

openly with your proposal administrator. They may suggest that based on your income and expenses, you reconsider keeping those assets. If this means downsizing your

house, or getting a less expensive car, then now’s the time to make these changes and give your budget the comfort of a little extra breathing room! You’ll be glad you

did. . They may suggest that based on your income and expenses, you reconsider keeping those assets. If this means downsizing your house, or getting a less expensive car, then now’s the time to make these changes and give your budget the comfort of a little extra breathing room! You’ll be glad you did.