GTA Credit Solutions Services Ltd

Your terms of payment depend on the negotiation between what you can afford to pay and what your creditor expect to get Acting as an administrator for consumer proposals, your certified bankruptcy trustee will meet with you to help determine how much you have to offer and to evaluate your financial condition

A consumer proposal plan offers debt relief for Canadians struggling with paying monthly debts while avoiding going bankrupt In Canada, the consumer debt proposals are the only program for debt settlement approved by the government

It is common to see a settlement of 20 to 30 cents in the dollar, but debt proposals differ Final agreements are based on what you own and your income However, all debt proposals to a creditor are unique

Will A Consumer Proposal Do Away With Debt? Consumer credit proposals deal with an unsecured creditor and can get rid of practically all debts such as:

• Tax debts include Personal Tax, HST and Source Deduction payment
• Credit card loans and Unsecured Line of credit Furthermore, a consumer proposal does not have an effect on a secured car loan or the mortgage on your principal residence

Benefits Of The Consumer Proposal Plan As a significant factor in filing insolvency, a debt proposal offers a lot of advantages over other options of debt relief Some of them include:

• It puts an end to calls from wage garnishments and collection agencies
• It lawfully binds all creditors to your offer including the Canada revenue agency and payday lenders
• It freezes interest on debts
• It merges debts into a low-end monthly payment
• It keeps all your properties including any equity in your residence
• It reduces your liability by up to 70 to 80 percent

What Are The Qualification Requirements To File A Consumer Proposal In Canada? As a regulated program acknowledged by the Canadian government, proposals have a particular requirement you will meet to be eligible and qualified for filing consumer proposals Below, we will look into these eligibility requirements:

• You must either have a property in Canada or be a resident of Canada
• Excluding your mortgage, your unsecured loan should not surpass 250,000 dollars
• You must be insolvent
• This means that you can no more keep up with debt payments as they become due, or your debts must be higher than the value of any asset you have
• You must be capable of paying a part of your debt

A consumer proposal program is a perfect choice for someone who has a high income that he or she will be required to make a considerable monthly surplus income payment It is also an excellent choice for one who would want to avoid going bankrupt

Consumer proposals are lawful processes under the Insolvency and Bankruptcy Act When experiencing financial issues with accounts in arrears of payments or accounts in collections, consumer proposals helps to prevent creditors from pursuing you continuously for payment

In conclusion, the first step to rebuilding credit is getting out of debt with a consumer proposal As in the case of any program of repayment such as debt management plans, consumer proposals will have an effect on your credit report for the time being, while most clientele, however, realizes improvements on their credit score immediately after the program is completed

As an honest but unfortunate debtor, you may choose to use the legal process of bankruptcy, regulated by the Act, to obtain a discharge from your debts (subject to reasonable conditions) Declaring bankruptcy means that your secured creditors cannot take legal steps to recover what you owe them, such as seizing your property or garnisheeing your wages

If you owe more than $1,000 and have carefully reviewed all your options, declaring bankruptcy may be the right choice to make

Perhaps the most common question those considering bankruptcy ask is, “Will I lose all my assets?” Happily, the answer is no There are several exemptions from seizure They are:

• Household furnishings to a value of $13,150