What Kind of Debt Does a Consumer Proposal Address?

Sometimes we just keep repeating our bad habits before we learn to change them. Our bad habits frustrate us and can even lead to complications with our health or financial wellbeing. When it comes to our finances, bad habits are especially hard to kick since people have often been practicing them for so long. But when we finally turn it all around, the rewards of a healthy lifestyle await.

Debt can pile up quickly and with interest rates soaring, the longer you go without addressing your debt, the worse the situation gets. For those who don’t know how to take the first step towards debt management, debt seems unsurmountable. You might even be thinking about filing for bankruptcy. However, you may have more options than you may realize. Take a moment to read this if you are considering bankruptcy to understand that there is another way to address your debt: a consumer proposal. 

An Alternative to Bankruptcy

Consumer proposals are the top bankruptcy alternative in Ontario and it’s easy to see why. Filing for bankruptcy can be a difficult, lifestyle-altering decision that many people want to avoid if they can. If you’re looking for debt solutions and bankruptcy seems like the one, then make a call to David Sklar and Associates to consult with a Licensed Insolvency Trustee (formerly known as a bankruptcy trustee) for help. 

These empathetic and knowledgeable insolvency counsellors can tell you how consumer proposals work and whether or not your debt falls within the parameters for this bankruptcy alternative. When you file a consumer proposal in Ontario, you benefit from the advantages such as the opportunity to negotiate your debt settlement and an immediate stop to wage garnishment and collection calls. 

While filing for bankruptcy usually comes with some serious changes to your assets, a consumer proposal is one way you can hold onto your assets through the debt relief process. 

Who Qualifies?

Once approved, a consumer proposal in Ontario enables the debtor to pay only a portion of their total debts. As the Bankruptcy & Insolvency Act outlines, consumer proposals provide debtor protection that stops collection calls and wage garnishment for those who file. 

A bankruptcy trustee in Ontario can help you pinpoint whether or not a consumer proposal fits your circumstance. While it’s the trustee who files the actual proposal, those who can put forth the proposal include: an insolvent person, a liquidator of an insolvent person’s property, or a bankrupt. 

How Do Bankruptcy Trustees Help?

If you’re struggling with debt, you need to do more than make preventative changes to your habits. You need solutions-focused action. You need an expert’s advice and a plan of action for addressing and eradicating your debt. 

Bankruptcy trustees have the knowledge and authority to administer the government-regulated insolvency proceedings that discharge you from your debt (namely, consumer proposals and bankruptcies). They’ll deal with the creditors on your behalf so you can focus on getting back on your feet. Don’t let debt rule over you, get in touch with a bankruptcy trustee today. 

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