Understanding Consumer Proposals, A Bankruptcy Alternative

Consumer Proposals Barrie When someone falls into the scary pit of unmanageable debt, the first reach for help seems to automatically be to bankruptcy. Bankruptcy is rarely your best option and there are several other options that you can explore to avoid bankruptcy, including consumer proposals. Check out our Debt Options Calculator to compare your debt management options.

A consumer proposal is typically your best bankruptcy alternative and/or debt management option to help settle your debts. Understanding the process and procedure of a consumer proposal can be simple.

Discussing Your Debt

After discussing your budget and money problems, a trustee can help you determine a proper estimation of what you can afford to pay back to your lenders and appropriate timelines. We will customize your proposal to suit your financial abilities, in the end, paying back much less than your total owed.

Finalizing Your Consumer Proposal

Once we have determined on the appropriate numbers, a specialist will put together the documentation, have you sign it and then file it accordingly. Thankfully this will help put a stop to those annoying collection calls or even wage garnishments.

Consumer Proposal in the Hands of the Creditors

The documentation will then be sent off to your creditors for them to look over and approve. Once enough creditors approve the proposal holding 50% of your total owed, the consumer proposal is approved and moves forward. If this doesn’t happen right away we can work with you and your creditors to adjust the proposal where it is attainable and agreed upon by both parties.

Payments Are Made

You will then make the agreed upon payments to your trustee where they will distribute to your creditors accordingly.

To find out more details on Consumer Proposals and how we at Don Allen & Associates Inc. can help you!

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