What are the benefits of filing a consumer proposal?

Some general benefits of

Filing a Consumer Proposal include being able to:

  • Consolidate debt
  • Reduce amount of debt that needs to be repaid (in full settlement) Debt can often be cut by up to 70% to 80%
  • Stop interest and collections By law, all interest will stop, and creditors must refrain from contacting you for payment
  • Have a definite date of being “debt-free” Consumer Proposal can last no more than 60 months and can be paid off early without penalty
  • Have a definite date of being “debt-free” Consumer Proposal can last no more than 60 months and can be paid off early without penalty
  • Deal with virtually all types of debts Even government debts like taxes, student loans
  • Protect assets from creditors Collection and legal action cease upon filing the Consumer Proposal
  • Avoid filing for bankruptcy.

What are the main steps in a consumer proposal?

  1. The first step is to book a free, confidential debt consultation.

Request a consultation with GTA Debt Solutions here! Or call us: +1 (647) 709-1243

  1. If you decide to file a Consumer Proposal, the next step will be to sign the official documents, which will then be officially registered and sent to your creditors.
  2. Complete the terms of your Consumer Proposal. (These are usually monthly payments, along with two financial counselling sessions).
  3. After your last payment, your Consumer Proposal will be finished! You are now debt-free and have achieved a financial fresh start!

bankruptcy

Debt Eligible

Both a consumer proposal consolidation and a personal bankruptcy filing can include virtually all types of debt, including but not limited to:

  • General consumer and business debts (credit cards, lines of credit, overdrafts, payday loans, personal debts, etc.)
  • Government debts (taxes, business GST, etc.)
  • Student loans (Federal, Provincial, private)

Negotiating Debts

  • With rare exceptions, the majority of bankruptcies automatically result in the full forgiveness of all debts.
  • You do not need to seek permission from your creditors or apply to Court to file bankruptcy.
  • No creditor can prevent you from seeking personal bankruptcy protection if you are unable to repay your debt.

Monthly Payments

  • The primary factor determining bankruptcy payments is your household's income. The majority of bankruptcies only require you to pay minimal fees and administration costs.
  • The fee in most personal bankruptcies is $2,300 total (broken into a manageable payment plan).

Consumer Proposal

Debt Eligible

Both a consumer proposal consolidation and a personal bankruptcy filing can include virtually all types of debt, including but not limited to:

  • General consumer and business debts (credit cards, lines of credit, overdrafts, payday loans, personal debts, etc.)
  • Government debts (taxes, business GST, etc.)
  • Student loans (Federal, Provincial, private)

Negotiating Debts

  • Consumer proposals reduce and consolidate debt to an amount that you can manage to pay back. Decreases of up to 50–80% are typical.
  • Creditors will accept full payment of your debt and forgive any outstanding balances. Your offer will be legally binding on all of your creditors, even if some choose not to accept it; only 50% of your creditors (by dollar amount) need to accept it.
  • Automatically stop ongoing interest rate charges.

Monthly Payments

  • Although alternative terms might be available, monthly payments are the most typical way to repay your consumer proposal debt.
  • Only payments offer to creditors are required

How do I file for
 bankruptcy in Canada?

Most bankruptcies in Canada are considered voluntary. The first step in declaring bankruptcy is finding a Licensed Inslovency Trustee. We at GTA Debt Solutions can help you file for bankruptcy. Also, there isn’t a need to contact a court or your creditors to file for bankruptcy. A trustee will work with you throughout the process. 
Even though most Canadians have a very clear understanding of bankruptcy, most bankruptcies in Ontario are quite private and follow a fairly simple process from the day of signing to the day of discharge or completion, which can happen in as little as nine months.
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