FAQ's

Frequently asked questions
What is CFFC?

Canada Freedom Financial Centre Ltd helps you analyse your current financial scenario and depending on your situation provide's you with Debt Restructuring advice and recommends programs like
1. Debt Management Program
2. Consumer Proposal
3. Bankruptcy
4. Credit-Rebuilding Program
5. Tax Review Program

What is a Debt Management Plan (DMP)?

A Debt Management Plan is an arrangement between the debtor and creditor that addresses the terms of an outstanding debt. Our DMP assists the debtors with all of their unsecured debts and help maintain a workable repayment plan based their current financial affordability.

What are the benefits of a Consumer Proposal over Bankruptcy?

A consumer proposal is considered as the #1 alternative to bankruptcy. Consumer proposals are the only government-approved debt settlement program in Canada. For those who qualify, a consumer proposal has several key advantages over bankruptcy:
• Immediately stops all legal action against you
• Protects your car, home, and other assets
• You repay only a portion of your total debts
• One affordable monthly payment for not more than 5 years
• All Interest is frozen once you file a CP
• Legally binding for you and your creditors

Is consumer proposal a good idea?

In a consumer proposal, you negotiate to repay only a portion of your debt. A consumer proposal is one of the best, and safest, debt consolidation options available.

How will bankruptcy impact my credit?

There is no way to estimate the impact a bankruptcy would have on your credit. It is the worst thing you could do to your credit scores. A first time bankruptcy will appear on your credit report for six years after the date of discharge. Your credit rating will be listed as R9 for the six year period after the bankruptcy is discharged.

How long does a consumer proposal last?

A consumer proposal cannot last more than five years, but the exact length depends on the type of proposal you submit. A consumer has the option of paying out a consumer proposal more quickly than originally arranged.

Does CRA accept consumer proposal?

A consumer proposal is the only government legislated program in Canada that allows consumers to put forth a legally binding debt settlement offer and tax debts owing to the CRA can be included in a consumer proposal.

Can you keep a credit card with a consumer proposal?

If you are going to do a consumer proposal then you are not permitted to keep a credit card. You are, however, permitted to have a secured credit card during your proposal. To apply for a secured Credit Card "CLICK HERE".

Can I keep my house if I file a consumer proposal?

When you file a consumer proposal, you can keep your home as long as you continue to make monthly mortgage payments.

How to deal with a Debt Collectors?

If debt collectors continue to hound you for the money just reach out to us at (#no.). We at CFFC help our clients get into an agreement made between a creditor and a consumer in which the interests are waived and/or total debt balance owed is reduced, and the reduced debt amount is paid in affordable monthly installments over a period of time as per our client's convenience.

Do you contact creditors and debt collectors?

No. We do not contact your creditors and debt collectors. Our prime responsibility is to assist you to file a Consumer Proposal and refer you to a Licensced Insolvency Trustee who will contact your creditors and debt collectors.

What is the difference between Secured and Unsecured debt?

The primary difference between the two is the presence or absence of collateral. Unsecured debt has no collateral backing: It requires no security, as its name implies. Secured debts are those in which the borrower, along with a promise to repay, puts up some asset as surety for the loan.

What is a credit report?

A credit report is a detailed breakdown of an individual's credit history prepared by a credit bureau. It includes information about your payment histories on loans and debts.

What is a credit score?

A credit score is a statistical number that evaluates a consumer's creditworthiness and is based on credit history. Lenders use credit scores to evaluate the probabilithety that an individual will repay his or her debts.

Will checking my credit report lower my credit score?

No, requesting your credit report will not hurt your credit score. Checking your own credit report is not an inquiry about new credit, so it has no effect on your score. You can check your credit score for FREE by "CLICKING HERE"

How to rebuild your credit rating?

When you make a mistake, there are only three things you should do about it: admit it, learn from it, and don't repeat it. Most of us have harmed our credit history and rating without even being aware about it. No matter where we are headed we will definitely need credit in future. Our unique Credit Building Programs will help you get back on track. To know more "CLICK HERE".

What is a secured credit card and how will it help me?

A secured card is a credit card designed for a consumer with bad credit or a thin credit file. It requires a refundable deposit in exchange for a credit limit. A Secured credit card can help build credit by reporting your activity to major credit bureaus. Apply for a secured credit card by "CLICKING HERE".