Is a Consumer Proposal Right for You?

Is a Consumer Proposal Right for You?

A consumer proposal is a debt repayment solution that can be a good alternative to bankruptcy for people who are in significant debt and who have a hard time paying their monthly bills. F. J. Zielski & Associates Inc. is a consumer proposal office in Belleville that helps clients reduce the amount they have to pay to their creditors. We'd like to help you decide if a consumer proposal is a good choice for you.


What Is a Consumer Proposal and How Does It Differ from Bankruptcy?

Bankruptcy discharges you from your unsecured debts by surrendering your non-exempt assets to your Trustee to share amongst your creditors. A consumer proposal, on the other hand, allows you to settle your unsecured debts without having to give up your assets. Unsecured debts include credit card bills, utility bills, medical bills, and loans.

A consumer proposal is a legally binding process filed under the Bankruptcy and Insolvency Act. It involves working with a Licensed Insolvency Trustee at a Belleville consumer proposal office to develop a proposal for your creditors. This proposal will seek to extend the time you have to pay your debts, to settle your debts for less than you owe, or both.

A consumer proposal must be accepted by over 50% of your creditors. Creditors are often willing to agree to a proposal because it typically ensures that they will be repaid to a greater extent than if the debtor files for bankruptcy. If your creditors agree to your proposal, then you will make payments to your Licensed Insolvency Trustee who will, in turn, pay your creditors individually.

Who Is a Good Candidate for a Consumer Proposal?
There are certain criteria that you need to meet for a consumer proposal. In order to be eligible, you must:
• Be an individual, not a business or a corporation.
• Be unable to make your debt payments when they are due.
• Have a steady source of income which ensures that you will be able to make your agreed-upon consumer proposal payments.
• Not have unsecured debts exceeding $250,000.

If you have a steady source of income and you just need to lessen your debt in order to start getting your finances in order, then a consumer proposal may be your best option for avoiding bankruptcy and losing your assets. Consumer proposals are also often a good option for people who have student loan debt. This is because filing for bankruptcy will not discharge student loan debt, but student loans are included in a consumer proposal.

Contact a Consumer Proposal Office in Belleville Today
If a consumer proposal sounds like it may be a good option for managing your debt, then F. J. Zielski & Associates Inc. is here to help. Our licensed Belleville consumer proposal Administrators will help you create a plan to repay your debts and present it to your creditors on your behalf. Creditors will recognize our expertise and record of successful consumer proposal administration.

To find out if a consumer proposal is right for you, just contact us for a free consultation today.

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