DEBT RELIEF OPTIONS IN NORTH YORK, ONTARIO
Consumer Proposal
A consumer proposal offers an effective resolution for individuals grappling with credit card debt, tax obligations, or personal loans. A consumer proposal is a legally binding agreement between debtors and creditors, consolidating and settling debts for less than the total amount owed. Only Licensed Insolvency Trustees (LIT), such as those at Chande Debt Solutions, are authorized to file consumer proposals.
Our LITs conduct thorough assessments to determine manageable monthly repayment amounts before drafting the proposal for your creditors. Following creditor approval, the proposal becomes binding, you make scheduled payments, and the remaining debt is discharged upon meeting all conditions.
Key benefits of a consumer proposal include:
- Reduction of up to 80% of total debt
- Suspension of legal actions, such as wage garnishments or frozen bank accounts
- Cessation of collection calls
- Preservation of assets, including tax refunds
- Elimination of additional interest on included debts
Debt Consolidation Vs. Consumer Proposal
While debt consolidation involves consolidating debts into a single loan and preserving credit scores and financial autonomy, it may pose challenges in eligibility and fail to address underlying issues or halt interest accrual.
In contrast, a consumer proposal may impact credit scores but allows for significant debt reduction, cessation of legal actions and collection calls, and prevention of additional interest on debts included in the proposal.
Personal Bankruptcy
Personal bankruptcy serves as a last resort for individuals with limited alternatives, offering a swift and cost-effective means of escaping insurmountable debt, with discharge possible within as little as 9 months. However, it impacts your credit score, and you must relinquish any non-exempt assets.
