Consumer proposals are a legally binding debt relief program approved by the Canadian government.
This process creates a “proposal” to:
The consumer proposal gets you out of debt from consumer credit.
This debt management plan helps those suffering from financial hardship, as an alternative to filing for bankruptcy.
Consumer proposals are an alternative to bankruptcy.
In bankruptcy you may lose property, where nothing is taken in a consumer proposal.
The consumer proposal is a settlement that is negotiated between the creditor and debtor, payable over a maximum of 5 years.
Borrowers usually prefer a consumer proposal over bankruptcy, because of the more serious implications, such as:
Payments and the total amount paid are less in a consumer proposal than the full amount of the debt owing. At the end of the term
The creditors are encouraged to accept the deal—because if they do not, the next alternative may be personal bankruptcy.
In bankruptcy most creditors would receive little or nothing in bankruptcy proceedings.
In a consumer proposal, the debtor (the person who owes the money) agrees to:
The amount repaid is determined by a proposal administrator (trustee), based upon the financial situation of the debtor.
Creditors and lenders agree to:
The consumer proposal consolidates all unsecured debt reducing it to one lower payment.
★★★★★ My husband was laid off, but our bills kept coming. We saved $18,000 and will be debt free in four years, Thank you Susan N. Oshawa
Consumer proposals apply to types of debt and unsecured credit such as:
Unsecured debts and credit that are not secured, can be applied to a consumer proposal getting you out of debt.
Secured credit like mortgages and car loans (loans that are tied to an asset like a vehicle or property) are not eligible for consumer proposals.
Debt Consolidation and debt-repayment plans consolidate your debt into one payment over 3 to 5 years, but:
Consolidation loans offered by debt settlement companies, can still leave you in debt for years.
When you enter into a consumer proposal:
Consumer proposals can reduce and pay off your debt over 3-5 years with payments and terms that are affordable to you.
For example, a debt of $20,000 could be reduced to $6,000, payable over 5 years without any interest at $100/month.
★★★★★ My husband was laid off, but our bills kept coming. We’re now in the consumer proposal and have one monthly payment. We saved $18,000 and will be debt free in four years, Thank you Susan N. Oshawa.
The advantages of a consumer proposal include:
Once a consumer proposal is filed you are covered by consumer protection.
Consumer protection means, creditors must stop all actions against you including, harassing calls, garnishments and law suits.
Payments a consumer proposal are based upon:
The trustee, as the proposal administrator works with you to decide what you can reasonably afford to payback on your loans.
★★★★★ I was maxed out with credit card debt, when I was laid off and there was no way I could pay the monthly minimum. We did a consumer proposal that saved me $22,000! Many thanks, Bernice Power Whitby.
There are no up-front costs to file a consumer proposal.
When you file a consumer proposal, you and the trustee work out what you can afford to pay on your debt.
The insolvency trustee then takes that amount to your creditors and negotiates a settlement.
The cost of filing a consumer proposal comes out of the money going to the creditors. There is no other fee or cost to you.
Consumer proposals are a government debt forgiveness payment plan with the following requirements:
Persons who are permanent residents or living in Canada under a work permit or similar may apply for a consumer proposal.
Making that first phone call is the hardest part of the process.
The first step to debt relief and filing a consumer proposal is to speak with us.
Consumer proposals are filed through an Insolvency Trustee, who are licensed to work as a “Proposal Administrators” by the federal government.
Every year thousands of people have financial issues, it happens, but let’s get together and fix this issue.
There is no cost or obligation to speak to a trustee and you can start today by calling us.
★★★★★ The consumer proposal got us out of debt we could never afford to pay back, we owed $33,000, just the interest was hundreds of dollars per month. We now owe $9,000 with 5 years to pay, no interest added at $150 per month. YanchDey saved us and are forever grateful. Danny Drake, Ajax.
Your first meeting with the trustee is a discussion about your debts and unsecured credit including:
Many times our clients find it easier to bring in the documents or bank statements for each debt so we have accurate amounts.
During this discussion the trustee will be looking to create a repayment and financial plan based upon:
The trustee is looking to:
The trustee takes the information about your debts. This information will include:
The trustee completes all of the paperwork and submits the proposal on your behalf.
Once the proposal is completed the trustee files it with the office of the Superintendent of Bankruptcy.
After the application is accepted a stay of proceedings is issued.
A stay of proceedings means that any creditors must:
After the proposal is filed the trustee sends notice to the creditors.
The creditors may ask for a meeting to discuss the terms of your proposals and ask any questions.
This does not always happen but if it does the trustee will hold the meeting and guide you through the process.
The creditors have 45 days to decide accept or ask for a creditors meeting. If no meeting is requested after 45 days the proposal is deemed to be accepted.
Should any creditors contact you, they should be directed to speak to the trustee.
Where a meeting has been requested the creditors have an opportunity to:
The trustee will chair the meeting, report to the creditors on your affairs and explain why the trustee feels the proposal deserves their support.
Where the creditors vote no, your options are to:
In a renegotiation the creditors may ask for higher payments or reduce the term of the payments, e.g from 5 years to 4 years.
Where meeting is not requested the proposal is deemed to be accepted after 45 days.
Where the proposal is accepted you start making the monthly payments on the proposal.
You are required to attend two credit counseling meetings with the trustee and an online program. The counselling is to help you going forward dealing with credit.
After the proposal has been completed you receive a certificate of completion.
The certificate of completion shows that the terms of the proposal have been completed and that the debt(s) have been cleared.
After completing the consumer proposal, Equifax credit reporting agency removes the consumer proposal from your credit report 3 years after you’ve completed the all payments.
TransUnion removes a proposal from your credit report either:
While in the proposal you can obtain a secured credit card. We suggest that you look for a credit card with a maximum credit limit of $500.
The credit card has to be paid off each month completely, and never have balance. The proposal will affect your credit score, but where you’re paying off the balance each month the credit rating will improve.
We also suggest that clients use this time to try to build up savings, as they do not have the high loan payments they were making previously.
★★★★★ YanchDey did all the paperwork and dealt with our creditors. The garnishment was stopped and we can sleep at night, we now have a fresh start. Many thanks, Debbie S. Ajax
After filing a consumer proposal creditors are prohibited from charging you further interest or from contacting you.
The insolvency trustee will act as your representative and deals with creditors.
Instead of making individual payments to each of your creditors for your debt, you make a one proposal payment (usually monthly) to the Trustee.
The consumer proposal payment covers all costs including the fee for the trustee, there are no additional or hidden charges to be paid.
Pauline Vorvis
3 days ago
★★★★★ We had 23,000 in credit card debt that I was never going to pay off. My new loan is now $7,000 and pay $195 over three years. Thank you so much.
Randy Singh
7 days ago
★★★★★ My husband’s paycheque was garnisheed, we owed 36,000. The consumer proposal, stopped the garnishment, and reduced our debt to 10,000. So thankful we called, if your in debt call YanchDey
Debbie Theriault
2 weeks ago
★★★★★ I needed to get out of debt. I still had student-loans after 10 years and was sick of borrowing money. I spoke with a credit counselor who recommended YanchDey. I thought I’d have to file for bankruptcy, but a friend told me about Yanchdey. I went and spoke to them, they explained how they could get me out of debt and save thousands. My life has changed, I can sleep and have control of my finances. With the consumer proposal I’m debt free, I even appreciated the debt counselling. No consumer credit and struggling with debt for me. God bless!
Christien Egistone
4 weeks ago
★★★★★ Thank you, I will have me out of debt in 3 years and save 15k, I’ll never have credit card debt like that again, I appreciate your help and will refer and recommend you to friends.
Danny Demers
1 month ago
★★★★★ I was very pleased the way they handled my creditors. I ended up paying a fraction of what I owed on my debt.
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