A consumer proposal in Vancouver is an effective debt solution for those struggling to pay off the full amounts of the money they owe to creditors in their currently allotted timeframe. As long as the debt accumulated is under $250,000 without including a mortgage from a primary home, individuals are eligible for this option. A consumer proposal can be customized to your financial situation and help you pay off your debt, either by making smaller payments than what you owe, giving you more time to pay it off, or both.
Debtors can obtain help from licensed insolvency trustees in Vancouver like Crowe MacKay & Company, who are overseen by the Office of the Superintendent of Bankruptcy, to propose a legal negotiation with their creditors. You simply cannot request more than five years to pay off your debt. After any potential meetings are held and your creditors approve, you must abide by the terms laid out in the consumer proposal and receive two sessions of financial counselling. If or when you complete the payments and fulfill the proposal, you earn a certificate of full performance that releases you from debt.
How Is a Consumer Proposal Different from Bankruptcy?
A consumer proposal is different than bankruptcy in many ways, particularly having less negative impact on your credit rating. It is also preferable to those facing insolvency in Vancouver by not costing you any of your assets, rather simply allowing you more time or less financial obligation regarding what you owe.
Your creditors prefer this process over bankruptcy, as well, because they are paid more of the debt that is owed to them through a consumer proposal in Vancouver. Overall, it puts both parties in a better position. Whether this is the right debt solution for you and if you are eligible to file one, it is best to speak with a licensed insolvency trustee in Vancouver.
This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.