Consumer Proposal

Advantages and Disadvantages of a Consumer Proposal

The Advantages of a Consumer Proposal

  • Stops all collection calls
  • Stops all garnishments of your pay
  • Stops all future interest charges
  • Stops legal actions taken by your creditors
  • Avoid filing for bankruptcy
  • Protect your assets
  • Pay back only a fraction of the total amount you owe
  • It is a legally binding agreement. No false promises.
  • One affordable monthly payment covers all fees and payment to your creditors
  • Proposal payments can be up to a 5-year term. This helps to keep your monthly amount to a reasonable affordable amount
  • A better credit rating than a bankruptcy (an R7 vs. an R9 in a bankruptcy) and
  • Gives you a Fresh Start. This could be the solution to get yourself out of your debt problems and rebuild your life.

The Disadvantages of a Consumer Proposal

  • Income or financial assistance (from family or friends) is required to fund the monthly proposal payments
  • Creditors vote if they want to accept or reject your proposal
  • Not all debts are discharged (erased) and
  • Results in an R7 credit rating and stays on your records for 3 years after your last payment.

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