Is a consumer proposal worth it? Yes, Consumer proposals are worth it when you consider the long term benefits…
When is a Consumer Proposal Worth Doing?
Consumer Proposals are worth doing for three main reasons:
- the proposal will get you out of debt
- your debts will be reduced up to seventy (70) percent
- stress will be dramatically reduced in your life
You’re not alone, many people ask themselves “is the process of going through a consumer proposal worth it”, but the answer is yes.
Where you’re having issues with debt, a proposal is one of the best things you can do to help yourself.
You won’t be alone, at Yanch Dey we’ll be doing all the paperwork, explaining the process and helping you along the way.
It’s a process that we will go through together.
When Should You Be Considering a Consumer Proposal?
A consumer proposal is worth doing when:
- you can’t paying debts
- wages have been garnished
- you’re getting collection calls and letters
- you want to avoid filing for bankruptcy
When your debts are under two thousand dollars consumer proposals are not worth it. The long term costs in relation to your credit rating would not be worth while, and credit counselling maybe a better option.
Why a Consumer Proposal is Worth it
Consumer proposals are worth it to many people as your debt is reduced up to seventy (70) percent, and:
- all law suits are stopped
- no further interest is added
- you keep all your possessions
- all collection calls are stopped
- wage garnishments are stopped
- you’ll be out of debt in usually 3-5 years
- there are no upfront cost to you to set up the proposal
- make one monthly payment to the proposal administrator
Where you have debt issues the benefits of filing a consumer proposal far outweigh any disadvantages.
Proposals vs Bankruptcy
A proposal is worth it when you consider the advantages over filing for bankruptcy such as:
- you do not lose all of your assets, e.g. home and car
- debts can be reduced dramatically, e.g up to seventy (70) percent
- garnishees are immediately stopped
As well any interest is stopped and creditors cannot call or harass you once the proposal is filed in court.
In bankruptcy the bankrupt, must:
- submit monthly reports
- surrender all assets to the court
- surplus payments maybe required
The biggest differences between proposals and bankruptcy are that in bankruptcy you must surrender assets that you own, and where your income changes you maybe required to make surplus payments (pay extra as your income increases).
How Credit Ratings are Affected
Many times people are concerned about how a proposal or even bankruptcy will affect their credit rating.
The answer is that regardless what route taken an insolvency either through proposal or bankruptcy will affect your credit rating for about seven to eight years.
Most people considering financial help are already in a position where their credit rating is already bad. The credit rating is either bad because of missed or late payments or payments that are in default.
Subsequently having the credit rating fall due to insolvency is not going to be something unheard of or unexpected.
The process of restructuring and getting rid of debt with the added help of counselling is usually a positive process that helps you to rebuild your credit and financial habits.
Start Rebuilding Your Credit
It may have taken years for your credit, liabilities and obligations to reach the level they are today, and likewise rebuilding your credit will take time.
The first step is to arrange to speak with an insolvency trustee to discuss your finances for a solution that will fit for you. Our staff has helped hundreds of people rebuild their credit and lives. We can stop harassing calls, letters and garnishees of wages.
As we’re sure you’ve heard before, if you could of done it by yourself you would have done it by now. Let us help you through the process to live debt and stress free.
There is no cost to call or speak to us, and appointments are available today. Call us today at 905‑721‑7506.