Consumer Proposals are a legal process in Canada that is designed to help individuals who are struggling with debt.
The proposal is a plan to pay off the debts over a period of time as an alternative to declaring bankruptcy.
If the creditors agree to the consumer proposal, it becomes legally binding on both the debtor and the creditors.
The debtor must follow the terms of the proposal and creditors are unable to take any further legal action against the debtor.
John, a 35-year-old resident of Canada, has accumulated a significant amount of debt over the years.
He has credit card debt of $50,000, and personal loans of $30,000. He is unable to keep up with his monthly payments and is facing collection calls and legal action from his creditors.
John decides to consult a licensed insolvency trustee about a consumer proposal. The trustee helps him prepare a proposal to present to his creditors. The proposal includes:
The proposal is presented to John’s creditors and, after negotiation, they agree to the terms. The proposal is approved and becomes legally binding on both John and his creditors. John is now required to make the agreed upon payments and his creditors are unable to take any further legal action against him.
With this example, John’s total debt was $80,000, and with the proposal, he will pay around $24,000, reducing his debt by 70%.
Please note that this is just an example, and the specifics of a consumer proposal will vary depending on the individual’s circumstances and the agreement reached with the creditors.
Are you struggling with overwhelming debt and searching for a solution that will allow you to keep your assets, protect your paycheque, and become debt-free in five years or less? A Consumer Proposal may be the answer for you!
Consumer proposals are a debt relief option that can offer many benefits, including:
In a consumer proposal, outstanding debts and credit card bills can be reduced by 70% or more. This means that you can have a fresh start and put your financial worries behind you. Additionally, interest, fees, and garnishments are stopped, allowing you to keep more of your hard-earned money. With a Consumer Proposal, you can keep all of your belongings and move forward with a new perspective on your finances.
Don’t let overwhelming debt control your life any longer. A Consumer Proposal may be the solution you’ve been looking for. Reach out to a Licensed Insolvency Trustee to discuss your options and find the debt relief solution that works best for you.
In a consumer proposal, outstanding debts and credit card bills can be reduced 70% or more. Interest, fees and garnishments are stopped. You keep all of your belongings.
Consumer proposals in Canada offer several advantages to individuals who are struggling with debt. These include:
Consumer proposals are administered by a Licensed Insolvency Trustee (LIT) who provides guides you throughout the process.
★★★★★ The interest and payments just kept on going up, then the collection calls started. My friend told my about YanchDey, I called and spoke to Kelly who explained how she could help with a consumer proposal. We saved over $30,000, we now pay $250/month and will be debt free in 5 years! Andrea R. Oshawa
Consumer proposals are a debt relief program available to individuals who meet the following:
It is important to note that certain types of debt, like student loans and taxes, may not be eligible for inclusion in a consumer proposal.
All unsecured debts, credit cards and unsecured loans can be applied to a consumer proposal, getting you debt free in 5 years or less!
You start a consumer proposal by calling our office. When you call you’ll speak with one of our trustees about your debt(s).
The trustee will document your bills, expenses and income. From these amounts the trustee will create a plan to pay back only a “percentage of the amount you owe”.
The monthly payment is based upon what you can reasonably afford to pay taking into consideration your income and expenses.
Are you struggling with debt and wondering if a Consumer Proposal is the right solution for you? Where you’ve made it so far the answer should be yes!
Consumer Proposals offer a number of benefits that can help you get a fresh start and regain control of your finances.
Here are three reasons why a Consumer Proposal is worth doing:
At Yanch Dey, we understand that the process of filing a Consumer Proposal can be overwhelming.
That’s why we’re here to help. We’ll handle all the paperwork, explain the process, and guide you every step of the way. You’re not alone in this journey, we’ll be with you every step of the way. So, don’t hesitate, take the first step towards a brighter financial future with a Consumer Proposal.
★★★★★ My husband was laid off, but our bills kept coming, we were drowning in debt. The consumer proposal solved our money problems and saved us $18,000. We will be debt free in four years, Thank you Susan N. Oshawa
In a consumer proposal you’ll be debt free in 3-5 years.
Once filed, you are covered by consumer protection. Consumer protection means, creditors (including credit card companies & people owed money) must stop all collection actions against you.
This includes harassing calls, garnishments and lawsuits.
The debtor (person who owes money) pays no fee, up-front or otherwise.
You and the administrator work out what you can reasonably afford to pay on your debt. The insolvency trustee then takes that amount to your creditors and negotiates a settlement.
The cost of the consumer proposal comes out of the money going to the creditors.
You qualify for a consumer proposal where:
Persons who are permanent residents or living in Canada under a work permit or similar may apply for a consumer proposal.
After a consumer proposal has been filed and accepted, creditors must follow the rules set by the government, such as:
The payments you were making to creditors stop. Instead of making individual payments, one monthly payment is made to the Trustee.
The trustee acts as your representative, distributes the money and deals with creditors in all matters, not you.
People contemplating insolvency may already have a poor credit rating and debt problems.
Where a person declares bankruptcy or submits a consumer proposal they are assigned the lowest possible credit score.
TransUnion removes a consumer proposal from your credit report either:
Your ability to obtain and use credit after a consumer proposal depends on convincing lenders of your personal financial maturity and ability to repay the debt; there are no guarantees—no one is required to give you credit.
Once you have fulfilled the terms of your consumer proposal, you will receive a “certificate of full performance” to present credit-reporting agencies.
★★★★★ We spoke to a consumer credit counseling agency that recommended YanchDey. Our personal loans plus my student-loan debt left us with little at the end of the month. The proposal was the best debt management program for us, paying off our debts in 5 years. We’re even saving money now to make a lump sum payment! Thank you NameWithheld, Oshawa.
Government endorsed insolvency trustees to help you with your finances.
Making that first phone call is the first and hardest part of the process.
You’ve got everything to gain, and only that huge debt to lose!
The first step to debt relief is to speak with us. We’re an office of friendly and professional people. We’re more than happy to speak with you and tell you how we can cut your by debt thousands of dollars.
There is no obligation or cost to speak with an insolvency trustee.
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 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 whether they will accept the proposal 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 a 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 counselling 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 all of the consumer proposal 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. 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.
I was buried in credit debt and didn’t want to ask for help.
My friend pushed me to see someone, that’s when I picked up the phone and called. After months of stress and anxiety – one meeting with them felt like a warm hug.
Before I knew it, I was signing consumer proposal documents with Kelly. I now am paying my bills with a plan to be out of debt in 3 years.
I am so lucky I came to YanchDey, the process that I thought would be like nails on a chalkboard was like a weight lifted off my shoulders. I admit there were some bumps in the road, but I feel like a new person – one who can pay their bills.
Get Out of Student Debt Forever
When I started college, in the first couple of days there were people at the school getting you to sign up for a credit card.
I applied for a student Visa, everyone was doing it and it seemed like a very reasonable thing to do.
I planned to use it to pay for my books and travel expenses while I was in school. I had a part time job and my parents were paying for my tuition so it wasn’t a problem.
However, once I graduated I couldn’t find work in my field and started applying for more credit to help me get by.
Once I was working I kept using the credit cards, plus a line of credit to pay for unexpected expense like car repairs or I would use them at Christmas time or occasionally to take a vacation.
I was never given any advice on how to budget or deal with finances. Before long I realised that my debt was so high I was never going to get out of it.
Even if I paid the most I could afford every month it would still take me years to pay everything off.
Rise Above Your Debt!
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 paycheck was garnisheed, we owed 36,000. The consumer proposal, stopped the garnishment, and reduced our debt to 10,000. So thankful we called.
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 thought I’d have to file for bankruptcy, but 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.
I was 30 years old with a great job but never had the skills to properly manage money.
I was in debt to banks, credit cards and most importantly to my friends and family. Constantly chasing the bills from pay cheque to pay cheque and embarrassed at work with collectors constantly calling. I didn’t want my co-workers to know, but in all honesty they all knew I had debt issues.
The debt was an embarrassment and source of shame, every day I was afraid to answer the phone because I knew it was a collector.
I was looking at losing everything, my house, my friends, my job.
I swallowed my pride (if you want to call it that), called YanchDey, which was the beginning of a new life for me.
At first, I was nervous and ashamed, but the staff at YanchDey were patient, caring, knowledgeable and understanding. There was no judging or shaming.
I ended up filing a consumer proposal. I was guided every step of the way by Kelly and Lorraine. I was able to pay off all my debts and even my taxes were brought up to date.
I have begun a new life, with no more looking over my shoulder. If this sounds like you, I highly recommend using YanchDey. Turned my life around. Thank you Kelly and Lorraine.
Call 905-721-7506
