Consumer Proposal Blackfalds

Not sure if filing a consumer proposal in Blackfalds is the right choice? You have options. We’re here to help. Contact us today to find out more.

Getting a consumer proposal in Blackfalds

These last few years have been very challenging for so many Albertans. So many of us are living paycheck to paycheck, struggling to pay off our debts. The creditors are calling or garnishing your wages, and you don’t know where to turn. Blanchard & Company is here to help you get through this turbulent time by offering consumer proposals for our clients in Blackfalds.

Consumer proposal or bankruptcy; what’s the difference?

A consumer proposal is the process of paying back a percentage of your debts with a monthly payment, one lump sum, or a combination of both. It’s a cost-effective solution for Canadians who can still make a monthly payment. Bankruptcy means you are unable to pay off all your debts and are looking for a fresh start. Both agreements are legally binding and will stop legal actions taken by creditors (ie, wage garnishment).

Consumer Proposal Blackfalds.
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Who can I discuss my options with?

A consumer proposal in Blackfalds is done by a licensed insolvency trustee, like the ones at Blanchard & Company. Our dedicated team of professionals will discuss your personal circumstances and determine if a consumer proposal or filing for bankruptcy is the right choice for you. Book your free consultation by contacting us today!

Though both consumer proposals and bankruptcy end legal actions by creditors, there are things to consider before making a choice, such as:

  • You’re unable to pay off all your debt in full but can afford a monthly payment
  • Your financial struggles are affecting your day-to-day life
  • Your wages are being garnished and you’re unable to make ends meet
  • You want to repair your credit faster

If any of these statements ring true, you may benefit from a consumer proposal rather than bankruptcy.

What happens when I file a consumer proposal?

There are several things to be aware of when you file a consumer proposal in Blackfalds.
• Creditors will stop calling, giving you piece of mind
• Wage garnishment ends, giving your back your full paycheck
• Your credit rating from a consumer proposal typically results in an R7 rating, whereas filing for bankruptcy results in an R9 rating, the worst rating of all
• A consumer proposal stays on your credit report for 3 years after you complete the repayment, while bankruptcy remains on your record for 6 years after completion

Are there disadvantages to filing a consumer proposal?

Debt Consolidation Alberta

Yes, there are. Some things to keep in mind are:

  • If your monthly wage decreases unexpectedly, you’re still responsible to provide the same payment you agreed upon at the start of your proposal
  • Creditors have the right to reject your proposal if they find less value in it than bankruptcy
  • Certain obligations are not affected or included, such as mortgages and vehicle financing, student loans less than 7 years old, as well child support and alimony

What happens if my proposal is accepted?

If your consumer proposal was accepted in Blackfalds, be sure you:

  • Make your payments on time every time
  • Adhere to all stipulations pursuant to your agreement
  • Attend the two mandatory counselling sessions which will educate you on how to repair your credit quickly and efficiently

First, don’t panic. You can still adjust your proposal to make it more enticing for creditors to accept. If no matter what changes you make the proposal is still rejected, we can help you look at other solutions for repairing your debt, such as debt consolidation and finally bankruptcy.

Debt Consolidation Alberta

I’ve met the conditions of my proposal. Now what?

Congratulations, you’ve made it to the final payment. If all conditions of your proposal are met in full, you will be released from all debts included in your proposal. If, however, you miss three payments or your last payment was made over three months ago, your proposal will be annulled, allowing creditors to take any legal action required to collect money owed to them.

Talk to us today!

A consumer proposal in Blackfalds can help you pay off your debts quicker and easier by offering a portion of your obligation to creditors and being forgiven the remaining amount. Debt can feel overwhelming at times but know that we are here for you to discuss your options. We will assess your situation and determine the best route to debt relief. Simply get in touch with us today for your free consultation.

FAQ – Consumer Proposal

Are consumer proposals usually accepted?

Yes! Consumer Proposals vary for every person, but most are accepted. Most consumer proposals offer a good deal to creditors and lenders, so they are usually accepted. Some proposals don’t even need a meeting with creditors.

How much will I pay back in a consumer proposal?

In a best-case scenario, a consumer proposal can reduce your principal to 20 or 25% of what you originally owed.

How will a consumer proposal help me?

  1. It can help you avoid bankruptcy.
  2. The formal document sets clear rules and expectations.
  3. A stay of proceedings will be issued for non-secured creditors.
  4. Your loans will stop accruing interest.

How will a consumer proposal hurt me?

  1. You will be required to fully disclose your financial situation.
  2. There are strict rules and regulations that cannot be changed.
  3. Stay of proceedings does not apply to secured creditors.
  4. Interest continues to accrue on secured debts.
  5. You cannot pick and choose which creditors are included or not included in your proposal.

What can be included in my consumer proposal?

Most unsecured debts will be included in your consumer proposal, including:

    • Credit card debt
    • Lines of credit
    • Personal loans
    • Payday loans
    • Student loans older than 7 years
    • Income tax debts

Will I lose my car or my house in a consumer proposal?

No, you will not lose your car or house in a consumer proposal. Your assets will be protected from unsecured creditors, but secured creditors are not included in your proposal. This means that as long as you continue to make payments on your car loan or mortgage, your secured assets will not be repossessed.

Can I keep my credit cards during a consumer proposal?

A consumer proposal will negatively impact your credit since a note will show up on your credit report for three to six years. This will let lenders know that you have filed a proposal which can make it hard to obtain future lending but it is possible to rebuild your credit after a consumer proposal.