Consumer Proposal Calgary
Wonder if filing a Consumer Proposal Calgary is the right choice? We can guide you through your options. Contact us for the Calgary consumer proposal.
Consumer Proposal Calgary process
We understand the tough and turbulent times many Albertans are currently facing. With so many people living paycheck to paycheck, the struggle of paying off your debts can feel like an insurmountable mountain to climb. But there are options, and we’re here to help you every step of the way.
What is a consumer proposal?
If you’re here, you already know how much of a struggle it is to pay off your debt. A consumer proposal is the process of paying back creditors a percentage of what is owed to them or extend the time you have to pay off your debts, or even both. With a consumer proposal, you can take back your life and stop worrying about collection calls or wage garnishment.
How can I start the process?
A consumer proposal will register an R7 on your credit report for 3 years after it is fully performed. With that said, there are 2 mandatory financial counselling sessions provided as part of the proposal which will educate you on how to repair your credit quickly and efficiently.
A consumer proposal in Calgary is done by a licensed insolvency trustee. At Blanchard & Company, we’ll discuss your personal circumstances and evaluate your current financial situation to determine if a consumer proposal is the right choice for you. Contact us today to discuss the various options available that could help solve your financial struggles.
Is a consumer proposal the right choice for me?
Ask yourself the following:
• Are you unable to pay off all your debt in full but can afford a monthly payment?
• Are your financial struggles affecting your day-to-day life?
• Are your wages being garnished and you’re unable to make ends meet?
If you answered yes to any of these, you may benefit from a consumer proposal. In Calgary, many people struggle with their finances and are searching for a more cost-effective solution than declaring bankruptcy. As your licensed insolvency trustee, we’re committed to helping you get out of debt and back on the road to recovery.
Benefits of a consumer proposal
- The phone calls stop; no more worrying about creditors calling
- Your wages won’t be garnished and your paycheck is yours once more
- 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 our record for 6 years after completion
The disadvantages of a consumer proposal
As with any insolvency, there are of course disadvantages.
The most important are:
- If you make less money than you did when you first filed your consumer proposal, you monthly payments are still based on the income you initially reported
- It must be approved by your creditors, who have the right to reject your proposal if it’s not enticing enough.
- Student loans will not be forgiven if it has been less than seven years from your end of study date
My proposal was accepted. Now what?
What happens if I’m rejected?
A consumer proposal is based on information you provide, including your current financial situation, your monthly income, and how much you are willing to pay. After we submit your proposal on your behalf, your creditors will vote on whether the offer is acceptable. If your proposal is not accepted, you can resubmit with different terms. Failing that, you can consider other options for solving your financial problems or declare bankruptcy.
What happens after my last payment?
During your agreement, be sure you don’t miss a payment. If you miss three payments or your last payment is more than three months past due, the proposal will be annulled. This means your creditors will be able to take action to collect all money owed to them. If you meet all conditions to your proposal in full, you will be released from all debts included in your proposal.
Get your FREE consultation today
At Blanchard & Company, we understand that debt can quickly go from manageable to overwhelming. Even though it seems there is no way out, there are options available to you. If you’re considering a consumer proposal in Calgary, get in touch with us today to discuss if the process is the right solution for you.
FAQ – Consumer Proposal Calgary
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?
- It can help you avoid bankruptcy.
- The formal document sets clear rules and expectations.
- A stay of proceedings will be issued for non-secured creditors.
- Your loans will stop accruing interest.
How will a consumer proposal hurt me?
- You will be required to fully disclose your financial situation.
- There are strict rules and regulations that cannot be changed.
- Stay of proceedings does not apply to secured creditors.
- Interest continues to accrue on secured debts.
- 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.
Book your appointment today
Feel confident that you are taking the right steps towards a debt-free future by contacting us today for a FREE consultation.