Filing a consumer proposal may be a great alternative to filing for bankruptcy. If you are wondering what options you have, meet with our licensed insolvency trustees to discuss what applies for your situation. York Credit has helped diverse clients to file consumer proposals. We’ve worked with clients who are unable to repair their debts and need more time or are seeking to stop interest charges from accounting further. There’s no need to give up your home or personal stuff in order to repay debts. We will discuss whether filing a proposal is the right step for you to take.
Unlike a debt management plan which creditors are not obligated to accept or participate by law, consumer proposals protect the debtor against any legal action because it is a legal contract that is recognized in the courts of law. There are cases when the creditor chooses not to accept the debt management plan and hence they can go ahead and take legal action against you. However, this cannot happen when you file the said proposal. As soon as you file this proposal, you will stop receiving calls from creditors who are threatening to take legal action.
A creditor may accept this proposal if they see that it will allow them to recover a greater portion of their money compared to other debt relief solutions like a debt repayment plan or filing for bankruptcy. You will only be allowed to file this proposal if you have a debt that is between $5000 and $250,000.
The steps of filing the proposal can be rather complicated for most people. You wouldn’t want to go through the nerve wrecking process of filing consumer proposals only for it to be rejected because it wasn’t done right. Our expert trustees can help to make your work easier. We will first discuss your options and then look at the benefits you stand to get when you consider the option we’ve recommended.