Consumer Proposal Bankruptcy
Are you considering filing for bankruptcy protection? If you are having difficulties paying all of your debts, maybe even putting a stop to collections calls, then perhaps it is time to think about this option. Bankruptcy can take many years to complete. Plus the negative effects on your credit report can last years longer, not to mention the fact that bankruptcy will destroy any assets you may have including real estate properties, gold and silver jewelry and more. So if you are looking for a way out from under your financial problems, you may want to consider a consumer proposal. A consumer proposal is a loan plan or debt proposal that can last up to five years and can only be done with a licensed trustee. Basically, you agree to pay your debt for less than what you actually owe. Then you make one, low monthly payment to the licensed trustee.
What Does A Consumer Proposal For Bankruptcy Do?
With a consumer proposal, you don’t have to worry about bankruptcy protection on your debts. Your unsecured debts such as credit cards, medical bills, collection accounts, and personal loans can be settled much like a personal loan. The unsecured nature of these types of debt proposals makes them much less risky for your creditors than secured debt proposals. This means that your creditors are more likely to work with you on a settlement plan that benefits you. But there is more. A licensed trustee cannot charge any service or commission fees from you. This means that the creditors won’t have to pay any legal fees in case of an unsuccessful debt proposal. Also, a licensed trustee cannot enroll you in any new programs. This means that if you do end up in bankruptcy protection, your unsecured debt will not be added to any other programs. This means that it is not possible for your creditors to take advantage of any protection offered.
So if bankruptcy protection is right for you, then by all means file a consumer proposal. But you should remember that creditors will still be able to contact you even after you have filed. This is because of the exemption stated in the law. This is not the only exemption; there are several others so you should check with your state’s laws to see just what they mean. It doesn’t matter if your bankruptcy protection is actually a consumer proposal or not. As long as you meet the eligibility criteria, the same protections apply. Creditors are not allowed to initiate collections against you, they can’t harass you, and they can’t threaten to take away your property unless there is reason to believe you are unable to repay. This discharge will remain in effect even if you are declared insolvent. You can be discharged from this protection once you have repaid all of your debts plus a certain amount of fees.