Consumer Proposals

Consumer Proposals - A Leading Alternative To Bankruptcy

An increasing number of Canadians are choosing to file a consumer proposal as an alternative to bankruptcy. When you a file a consumer proposal, Canada Freedom Financial Center will analyse your current finances and assist you with a tailor made debt repayment program specific to your situation so that you only have to repay a portion of your debts.

A consumer proposal is a legal agreement between you and your creditors to repay part of the debt that you owe. The arrangement is governed by Canada's Bankruptcy and Insolvency Act and is proposed to your creditors by a bankruptcy trustee as an alternative to you declaring personal bankruptcy. The amount proposed to repay your debts is largely based on your income and what you own. What makes consumer proposals attractive is their potential to significantly reduce the amount of debt you are required to pay your creditors.

By filing a consumer proposal, you will:

• Stop all interest charges from the date the proposal is filed
• Negotiate to repay just a portion of your debt
• Repay your debts in equal monthly payments over a period of three to five years
• Stop all wage garnishments and harassing phone calls from creditors
• Pay off unsecured debts such as credit cards, lines of credit, payday loans and taxes
• Keep all of your assets including your car and your home
• Pay no additional costs or fees beyond your regular monthly payments

Why should I file a consumer proposal?

A Consumer Proposal allows an individual to avoid personal bankruptcy and can be an effective alternative. A successful Consumer Proposal allows you to keep control of your assets while your unsecured creditors agree to accept a lesser sum than is owing to them in full satisfaction of their claim against you.

There are many solutions that can provide debt relief, and a Consultant at Canada Freedom Financial Center will be able to explain all your options so you can find the best solution that’s right for you. If any of the following apply to your situation, you might want to file a consumer proposal:
• You have consumer debt greater than $5,000 but less than $250,000
• You’re able to repay a portion or your debts, but need more time than your creditors are offering
• You want to stop all interest charges, wage garnishments and threats of legal action
• You don’t want to give up your house or any of your belongings to pay off debt
• A consumer proposal is just one of the debt help solutions offered by Canada Freedom Financial Center. You can speak to us to learn more about all your options, including budgeting, debt consolidation and bankruptcy. For more information, call us on 1-888-551-6704 or request a call from us today.

What debts can be included?

All unsecured debts can be included in a Consumer Proposal. Anything that does not have any collateral or asset against is eligible : Eg : Credit Cards, Bank Loans, Pay Day Loans, Tax Debts, Student Loan (Over 7 years). It does not have any impact on Mortgage, Car Loan, or anything pertaining collaterals. It also does not affects any future secured borrowings.