NOTE: All parties have to agree to the terms of the Proposal, and as such the amount of repayment that is accepted by creditors can vary widely.
Benefits of a Consumer Proposal
- Unlike a Declaration of Bankruptcy, a consumer proposal allows you to retain your assets for your own use and enjoyment.
- Once the creditors have agreed to the proposal, they are unable to ask for more money. This puts an end to collection calls and demands for payment and paves the way for you to rebuild your financial future.
- Your credit bureau rating will not be as adversely affected as in a bankruptcy scenario. In fact, it is possible to obtain a secured credit card or secured car loan during the course of the proposal process.
- The procedure is significantly less complicated than a bankruptcy. Under a proposal, there are no monthly reporting requirements, whereas those who elect to file for bankruptcy are required to make monthly reports to their Licensed Insolvency Trustee in order to comply with their obligations and obtain a discharge.