At Goth & Company Ltd. we believe it is important to consider all options when experiencing financial difficulty. Remember, there are alternatives to bankruptcy, bankruptcy designed to be a last resort solution and it is important that all your options are considered prior to making any decisions.
Find out what options are available to you and your family. Submit our short debt evaluation form
You have debt, How can a Consumer Proposal help?
Simple put a consumer proposal will legally and significantly reduce your debt load, up to 80% and allow you to avoid bankruptcy.
5 reasons a Consumer Proposal could be the right solution for you.
- Repay only a portion of the debt you owe
- Stop all creditors, collection agencies and garnishments
- Protect your assets, home, car, RRSP, tax refunds
- One single, affordable monthly payment
- Freeze interest and eliminate further interest on accounts
Are you a candidate for a consumer proposal? Submit our short debt evaluation form.
What is a Consumer Proposal?
A consumer proposal is a court sanctioned process that allows you to negotiate a settlement with your unsecured creditors. It is designed to allow those who cannot afford to pay their debts in full a way to avoid a bankruptcy.
For example, if you have $35,000 in unsecured debt (i.e. credit card debts, bank loans, and taxes) and only have $500.00 left each month after your normal living costs, you cannot afford to pay the $1,050 per month minimum payments that would be required. This is the type of sitaution that a propsal was designed to help with. You could consider making a consumer proposal where you propose to pay the creditors a total of $15,000 over the course of up to a five year term. In the proposal you will no interest (this has been frozen by the court), and you end up with one a paymet that could be as low as $250.00 per month.
How do you file a consumer proposal
You first need to meet with a consumer proposal administrator (a trustee). The administrator will assist you in assessing your situation and in determining whether or not a propsal will work in your situation. After reviewing the specifics of your finances (i.e. who you owe money to, how much you owe, your monthly cash flow etc.) the administrator will help you to determine what type of offer would be required to satisfy the creditors and whether or not that will fit into your montly budget. At the same time the trustee will explain how the proposal process works as their are key concepts that are essential for you to be familiar with (i.e. voting, the stay of proceedings etc.). If the numbers appear reasonable for both you and your creditors, the trustee will help to prepare the documents necessary to file a consumer proposal to creditors.
Who decides if a proposal is acceptable
For a proposal to be accepted we need to have a majority of the creditors, so there is a formal voting process that takes place. Your unsecured creditors will have 45 days to determine if the proposal is acceptable and as long as we have a majority of the creditors cooperating with the proposal, regardless of which creditors we are dealing with, the consumer proposal is automatically binding on all the creditors involved.
Once the proposal has been accepted by the creditors it is also approved by court, but this is largely a rubber stamp, as long as the creditors are happy and the proposal has been written properly based on valid information, the court is happy to ratify the creditors decision.
COMPARE YOUR PAYMENTS ON A CONSUMER PROPOSAL
Based on $75000.00 of Unsecured Debt Payments over 5 years. These results could vary depending upon your unique situation. Talk to our team to get your personal evaluation