Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Avoid Bankruptcy with a Consumer Proposal

By Andersons Subscribe to RSS | December 17th 2011 | Views:
loading
 
  



It can be hard to pay off all of your bills, no matter how hard you work on eliminating them. You can often afford to pay some money, but not as much as is being asked from you. If you are faced with this situation from month-to-month you may want to consider a consumer proposal. A consumer proposal is similar to a debt management plan—however you only repay a portion of your debt and you must secure the services of a trustee. The difference between these two is a debt management plan is a voluntary agreement between you and your creditors, while a consumer proposal is a legally binding procedure.

A consumer proposal gets its name because you are basically “proposing” a deal to your creditors; in order for it to work creditors have to agree with your proposal. Consumer proposals are created to allow trustees to negotiate on behalf of their clients for repayment plans with their creditors. As a legal procedure there are specific rules to be followed on both sides, so the creditor and consumer can be treated fairly.

If you are having trouble eliminating your debt and are thinking of filing for bankruptcy, this might be a better solution. You may also use a consumer proposal if you are just looking for better ways to deal with what you owe. For example, consumer proposals are often a good option if you can’t get a debt consolidation loan, because of a bad credit score. Consumer proposals are generally a viable choice if your debts exceed $ 5,000, to a maximum of $ 250,000 (not including your home mortgage).

It may sound unlikely that your creditor would accept a consumer proposal where they get less than the full amount owed but there are reasons on your side that make it possible. Creditors don’t want you to go bankrupt because then they do not recoup any of their money. It is better for creditors to receive at least some of the money you owe rather than none.

A consumer proposal has its advantages:

• By negotiating with creditors you agree to repay only a portion of the debt you owe.

• Your maximum repayment period is five years.

• Interest stops accumulating at the date you file.

• You can save your house or any other assets.

• The effect on your credit rating is less severe than in the case of bankruptcy.

• All collection activities by creditors are immediately stopped, including wage garnishment (except support and alimony).

• Your creditors are restricted from taking any legal action against you.

There are some things a consumer proposal won’t do for you:

• Eliminate your support and alimony obligations

• Eliminate your student loan obligations

• Let you pick and choose the debts to be included

• Handle any secured debts like house mortgage and car loan.

The only way a consumer proposal can work is if you have the ability to make your payments. If you know how to negotiate with creditors properly for the best possible solution a consumer proposal can help solve your debt problems. If you are not sure how to deal with creditors on your own consider hiring a professional to negotiate on your behalf.

There are many credit counselling companies in Canada that can provide you with experienced counsellors. They will help you find the best solution to address your current debt. A trained credit counsellor can assess your situation, answer all of your questions and help you choose the best way out of your financial difficulty.

Andersons - About Author:
Through education, credit counselling and debt management, http://www.consolidatedcredit.ca enables folks pay back debt faster. Receive addiitional information regarding a debt management plan immediately!

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/finance-articles/avoid-bankruptcy-with-a-consumer-proposal.htm

Related Finance Articles Subscribe to RSS

Making debt settlement customized
Published by Rajkumar Kaushal on April 27th 2012 | Finance
Debt Settlement personal is important because they are options that would make your debt reduced dra...
 
How to manage your debt
Published by Rajkumar Kaushal on June 23rd 2012 | Finance
Getting debt consolidation during settlement of debt is very important. Cashless policy where credit...
 
HOA management- Capable providers for financial as well as property management
Published by Ema Sis on January 12th 2012 | Finance
HOA management companies shall be actual asset for communal administration amenities. They undertake...
 
Bad credit debt consolidation UK
Published by Fresh Finance on January 19th 2012 | Finance
The debt consolidation entails taking out one mortgage to pay off many others. This is done to prote...
 
How creditors help you in learning more about bill and debt consolidation
Published by Joseph Goins on May 18th 2012 | Finance
People facing high bill problems can find a solution and relief through bill and debt consideration....
 
Outsourcing debt settlement is the best solution
Published by John Taylor on December 26th 2011 | Finance
If you are in the business of marketing debt resolution services, you should consider outsourcing de...
 
Top tips for money management and using a credit card
Published by Jesse Wallace on June 6th 2012 | Finance

Learning how to use your credit card effectively could help you balance and manage your debts....
 
Eldridge Financial Blog: UK in recession again as recovery is ‘paralyzed’ by the European debt crisis, forecasted.
Published by Eldridge Blog on February 18th 2012 | Finance
Britain is once again suffering a recession and unemployment risks coming close into three million t...
 
Maryland debt settlement centers
Published by Rajkumar Kaushal on May 30th 2012 | Finance
Maryland Tips and management in debt settlement centers is one of the management of debt that Tips a...
 
Making debt settlement easier with groups
Published by Rajkumar Kaushal on May 15th 2012 | Finance
Debt settlement forms and articles have become what a lot of people are making use of when it comes ...
 
Understanding Christian and credit card debt settlement organizations
Published by Julia Roger on December 14th 2011 | Finance
With increasing debts among the majority of the population, people have started to seek professional...
 
Financial Planner: Time to do savings through smart management
Published by Avena Sowell on December 21st 2011 | Finance
Financial planning can help one to manage the financial resources optimally and thereby generating h...
 
Caravan Loans - Helps You to be in debt Caravan Loans
Published by Mark Fulton on February 3rd 2012 | Finance
Caravan Loan is extremely well-liked these days, insist in increasing and is basically liked car fi...
 
Preferred Stock- Personal debt and Equity
Published by Isol on August 13th 2012 | Finance
Preferred stock options executes some degree associated with title in a company but by natural means...
 
Why hire a credit card debt management company?
Published by Yossi A on January 12th 2012 | Finance
As a matter of fact, it not only clears your already existing debt but also offer valuable technique...
 
What precisely does Credit card debt help signify and just how can it benefit me?
Published by Deby Suportie on April 2nd 2012 | Finance
Credit card debt help is a support offered by lending companies to help those who are struggling wit...
 
Counseling debtors during debt settlement
Published by Rajkumar Kaushal on May 19th 2012 | Finance
When you are about planning for Counseling in debt settlement and debt activities, it is important t...
 
Contact Blake, THE professional and fair debt collection agency designed to take the hassle out of recouping your money!
Published by James Blee on June 16th 2012 | Finance
Leading from the front is Managing Director Howard Blake who understands the importance of successfu...
 
Settlement of debt in America
Published by Rajkumar Kaushal on June 23rd 2012 | Finance
Getting settlement in America when it comes to credit card is not very easy sometimes because of the...
 
How to live free of debt in California
Published by Rajkumar Kaushal on May 15th 2012 | Finance
You must have seen debt settlement tips today or days back online. This is debt information for the ...