Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
adam@debtcliniccanada.ca (905) 970-0439
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca
Slide Do you need help
getting out of debts?
Find out your options! For free professional and
confidential initial consultation, call:
(905) 970-0439 adam@debtcliniccanada.ca

January 2014 – Option for solving financial problem Part VI – Consumer Proposal.

By:Adam Aspilla
January 25, 2014

So far Debt Consolidation, Mortgage Refinancing, (equity take out), Liquidation of Assets, Debt Settlement, Credit Counseling were discussed in the last five issues of this paper. The sixth is called Consumer Proposal. You may visit www.debtcliniccanada.ca to read the five options above mentioned.

Consumer Proposal, as the name implies is to make a proposal to your creditors to pay less than what you owe. There are two kinds of proposals: the first, Informal Proposal and the second, Formal Proposal.

In an Informal proposal, your creditors are not bound to accept to whatever amount is acceptable to your creditor or creditors who hold more than 50% of your total debts, while in a Formal Proposal all your creditors are bound to accept to whatever is the amount acceptable by your creditor or creditors who hold more than 50% of your total debts.

Moreover, in an Informal Proposal you can do it yourself, while in a Formal Proposal you need services of a Consumer Proposal Administrator.

In a Consumer Proposal just like in Credit Counseling only unsecure debts (without security or collateral) are included, also, it is interest-free.

The amount of your proposal would depend on the total amount of your debts, net monthly income, dependents, and assets.  Full payment of the accepted proposed-amount should be made within sixty months.

Furthermore, should you default on your payments your proposal would be cancelled and your creditors would pursue to collect the amount you owe before you made a Consumer Proposal.

In addition, if you have sufficient assets like: equity on your house and investments, you could not qualify for Consumer Proposal, as your creditors would demand to liquidate those assets to pay off your debts.

If a Consumer Proposal is not appropriate on your financial situation, you may consider Debt Consolidation, Mortgage Refinancing (equity take out), Liquidation of Assets, Debt Settlement, or Credit Counseling as discussed in previous issues.

Should any of the above is not applicable to your financial circumstance you may consider bankruptcy as a last resort, which the writer will discuss in the next issue of this paper.

Adam Aspilla operates the Debt Clinic of Canada Inc. for more than 30 years.  He was a former financial planner, a former mortgage broker, and the author of the book, You Can Negotiate All Your Debts.  He also writes another column, “Biblical Perspectives” in this paper. For a free initial, expert, professional and confidential financial consultation on your financial issues like: Debt Consolidation, Credit Counseling, Consumer Proposal, Bankruptcy, and securing 1st and 2nd Mortgages, call 905-970-0439 or visit www.debtcliniccanada.ca

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