Consumer Proposal Settlements in Toronto, ON
If you are an individual or a family and your total debts do not exceed $250,000 (not including a mortgage loan secured by your principal residence) and you are finding it difficult to keep up with your monthly payments, a consumer proposal might be the right choice for you.
What is a consumer proposal?
A consumer proposal is a formal, legally binding process through which it is proposed to your creditors that while your debts are no more affordable, you are willing to pay a portion of what you owe through interest-free monthly installment which is much lower and manageable.
When is a consumer proposal appropriate?
To find out if a consumer proposal (or a different option) is the right choice for you, we can set up a no-obligation meeting with you to discuss your personal circumstances.
We will evaluate your financial situation and provide a defined payment plan which is based on your family income and other obligations. This settlement is what you need to overcome your financial problem and regain your freedom to cover your other needs.
We will also explain the pros and cons of the various options that could help you solve your financial problem.
How long is the payment plan in a consumer proposal?
In an approved proposal, you agree to pay a small portion of your debt which does not have any interest charges. The fixed pay back amount can be paid in monthly installments. The maximum time it can be stretched up to is 5 years. However, you have options to pay more and finish it as soon as you want.
What will happen to my assets as a result of filing a Consumer Proposal?
When you file a Consumer Proposal you are able to keep your house and your car. Your other assets are also not seizeable under the law, which means you get to keep those assets which include your personal Savings, R.r.s.p & R.e.s.p, Business Assets and your Insurance Policy. It has also no effect on a person’s Pension Plan, Old Age Security and any other Income Benefit.
What kind of Debt can be included in a Consumer Proposal?
All your unsecured debts can be included. It consist of Credit Card, Store Card, Line Of Credit, Bank Loan, Payday Loan, Personal Loan, Short-term Loan, Income Tax, GST/HST Owing, Student Loan, Business Loan, Bank Account Overdraft, Shortfall Loan Owing and more.
Will I be able to obtain new Credit Cards after filing Consumer Proposal?
Yes you will be able to obtain new Credit Cards after you have filed your Consumer Proposal. We ensure that our clients are on the path to rebuild their credit history while they are in this process. Apart from credit cards, you will also get our professional advice to obtain a vehicle loan or a mortgage loan, for a prosperous future. Our goal is not just limited to making you debt free but also to help you possess personal wealth and assets in the long term.
Will a Consumer Proposal stop the collection process and other legal actions initiated against me?
A Consumer Proposal will immediately stop any legal actions and wage garnishments. It will also put an end to the collection efforts against you by your creditors or the third party agencies. You will start receiving your full pay and all the harassing calls and letter will go away.
Call us today at 416-780-1020 or get started with our Quick Assessment Form and book your free consultation.
With five offices in different parts of Greater Toronto Area, a counsellor at Credit Management Services will work for you to make you debt free again.