Consumer Proposal: How can it Help your Bankruptcy?

With instances that are really impossible for borrowers to deal with their debt problems, it is not easy to have a determined plan to keep stability in your finances. With a solution like that, it will always be worth trying; after all, your credit is at stake. If poor credit is not prevented, it will be a big issue to resolve with great help from an expert. With the continuous effect of bad credit, debts and bankruptcy might be the last results you have to encounter. Thus, when you cannot afford to repay your debts, a consumer proposal may offer a legal way to settle for less than you owe.

If you are one of those individuals who seems to be most involved in debt and bankruptcy, this procedure might be the right deal for you. People who are dealing with bankruptcy might feel discouragement at the moment. Their assets and unstable income can be why consumers shall be the following option to file bankruptcy. Even though it will be a challenge after consumer proposal, it is still gaining popularity from people who are into taking the risk for most of the better than surrendering it all with bankruptcy in mind.

When do you consider having the consumer proposal?

When it comes to dealing with your finances, It is hard to decide whether it is where you’re improving ways to go on or not. Thus, you must be determined and able to weigh down options that might be helping you to go through it. It would help if you considered consumer proposals when:

  • You don’t want to lose your assets because of bankruptcy.
  • You want a powerful alternative way than to be lost in bankruptcy alone.
  • You want legal protection from credit collection with the help of any possible legal ways.
  • You need to stop making payments on your unsecured debt.
  • You want your trustee to handle all communications with your creditors on your behalf.
  • You want a legally binding agreement to repay a portion of your debt between you and those unsecured creditors.

If you are convinced to have these reasons upon having the procedure of consumer proposal, then it is best to start it now. The faster you can deal with these, the more able you can have stable credit. After consumer proposal, you can be severe on having the right ways to make your credit rating worthwhile.

A Consumer Proposal can be advantageous in the following ways:

  1. Maintaining reasonable control of all your assets.
    It is a weakening instance where you will find yourself admittedly losing your hard-earned assets in which you invest, including your home, vehicle, and furniture. Investments like these are genuinely saddening to leave behind as it takes time and effort to have it all along. Thus, after consumer proposal, you will soon realize how important those investments or assets you have. As it simply defines most of your whole being, which is made evident by time alone. Life after consumer proposal will soon be available if given the right time to solve your problems.
  2. Lower monthly payments.
    With a consumer proposal, it is possible to see how uncommon your debts might be, allowing you to pay only a portion of your debts and not include your interest, fees, or any additional penalties. It is also where the situation comes in with 70% to 80% debt deduction effective of a consumer proposal. Getting a consumer proposal for lower monthly payments might be ideal as you can also save most of your finances with less money to repay debts.
  3. Only Pay what is Agreed upon in the Proposal.
    With a debt increasing in value over time, it became harder to keep up with continuous payments. Yet, you do not have to worry about it. You can easily have the right to pay nothing more than what has been available in the Proposal with a consumer proposal. You can also note that your payments will always stay the same with the procedure and the consumer proposal.
  4. Early negotiation with your Creditors.
    It is relevant to understand its procedure along with your bad credit or debts. A Licensed Insolvency Trustee can be helpful for you. You can easily rely on them. In fact, you can be at ease as they can easily explain the situation to your creditors on your behalf. As soon as they can fill solutions to these problems, it will be faster for you to have the procedure of rebuilding credit after consumer proposal.
  5. Rebuilding your Credit after Consumer Proposal.
    If you feel bad about your credit rating or credit score, it is unnecessary to feel that hurt for a long time as you can still bring a solution. If you complete your consumer proposal, your credit score might be low, and it will start all over again. Rebuilding credit after consumer proposal will be easy if you have already completed your consumer proposal all by yourself. In the end, securing your assets from the very first place is the main priority at the moment.


Unlike other options to get out of debt, a consumer proposal might be the right one for you. In addition, if you are an individual or know anyone struggling with their finances yet having difficulty with their debt, life after consumer proposal will be waiting for you. It will also let you have a fresh start with your credit.

Understanding consumer proposals will also lead you to meet with a consumer proposal administrator.  Through them, they will inform you about the appropriate payment plan. They will also let your creditors know the right payment plan. Lastly, once your creditors and the court accept your Proposal, it will be a legally binding statement for your unsecured debts.

You can find the solutions you need today! Find a local Trustee, and you can also talk to Credit Repair Now Canada. Have a conversation with one today!

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