Your Debt Solutions Experts
BDO Hanover

485 10th Street
Hanover, Ontario
N4N 1R2
(519) 372 0188

How can a consumer proposal help me eliminate debt?

We understand. You’ve reached the point where making ends meet is nearly impossible. Your debt continues to accumulate, you have no emergency funds to assist with a job loss or unexpected life event, and you’re worried about your future. While you believe you have the ability to repay some of your debts, you’re unsure how to go about it. What’s the right debt solution? For many people, it is a consumer proposal – a leading alternative to filing for bankruptcy.

A consumer proposal is a formal proposal made to your creditors to settle your debts and prevent any legal action from being taken against you. You and a Licensed Insolvency Trustee (LIT) will work together to develop a debt repayment plan that is manageable for you and fair for your creditors. There are no additional fees, no interest charges. A consumer proposal puts an end to collection calls and wage garnishments while allowing you to keep your assets.

What type of debt can I pay off with a consumer proposal?

A consumer proposal allows you to repay unsecured debt, which includes credit card debt, lines of credit, payday loans and income taxes. Student loan debt can also be included in a consumer proposal after you’ve been out of school for over 7 years. Any forms of secured debt, such as a mortgage or car loan, cannot be included in a consumer proposal or bankruptcy.

How would a consumer proposal work for me?

When you file a consumer proposal, an LIT negotiates with creditors on your behalf to reduce the amount of debt owed and stop interest charges. You would agree to repay the remaining debt over three to five years, giving you one equal monthly payment.

Need help understanding all your options?

A debt help professional from BDO will listen carefully to your situation and explain every debt solution available, including how a consumer proposal could work for you. You can get started by requesting a call or filling out an application form today.

Book a Free Consultation