For those who wish to avoid declaring bankruptcy, you may consider a consumer’s proposal.
A consumer proposal is an official procedure governed by the Bankruptcy and Insolvency Act, which is exclusively available to individuals whose total debts do not exceed $250,000 excluding debts secured by their principal residence.
In the cases where a consumer proposal constitutes the most judicious solution, we will help you put together an offer to pay your creditors a percentage of the debts owed to them, extend the time you have to pay off the debts, or a combination of both.
The offer made will be established based on your financial capacities. The payments are made to the trustee, who will distribute the funds in accordance with the terms of the proposal, as well as in accordance with the Law.
The consumer proposal is a simplified process compared to other type of proposals (division 1 proposal) (see following section) and is only available to individuals.
The advantages of consumer proposals are that you retain all of your assets. Upon filing the said proposal, all actions against you by unsecured-creditors, such as wage garnishments will be stayed (stopped).
It is nevertheless important to note that the consumer proposal is a judicious alternative in certain circumstances only.
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