When it comes to discussing things you need to know about consumer proposals, it is important to consider a few essential aspects. Bankruptcy is designed to provide a fresh start for all Canadians who are unable to pay their debts. But, Canadians with large assets might not like the idea of starting over without all they previously owned. Fortunately for them, there is the consumer proposal option. In this article, you will be able to learn about consumer proposals and how they can be beneficial for your situation.
Those who have considered filing personal bankruptcy in Canada and looked through the list of provincial asset exemption allowances emerge in a state of shock. If you are the owner of many things, you will be required to give many of them up. There is no getting around it, as vacation homes, ATVs, boats and RVs, and a whole lot of other stuff will be seized and sold to pay back creditors part of what you owe.
In order to protect those assets, the consumer proposal is the perfect solution for debtors whose income is still good and high enough to pay back some of the debt owed. To find out if your income is high enough and your debt low enough, make sure to consult with a licensed bankruptcy trustee in Victoria. They will thoroughly evaluate your situation, and if they are able to create a single monthly payment you can make over a five year period to pay back a reduced amount of what you owe, you will qualify.
The bankruptcy trustee you choose will file a proposal with your creditors mentioning the reduced amount they will get. If you can get agreement of a simple majority of your creditors by dollar volume, you get to keep your assets, as long as you can make timely payments for the time agreed upon in the proposal.
The fact that you get to keep all of your assets is a major advantage of consumer proposals, but the legal protection could be even more significant. If you have carried out some research on bankruptcy options, you will know that a consumer proposal is essentially the same as a debt settlement plan offered by different credit counselling companies.
Finally, it is important for you to know the fact that the consumer proposal option will cost you far less than a debt settlement plan. You will have to pay the court expenses and the trustee’s fees.
Thus, if you wish to be debt free in Victoria, make sure to consider the above mentioned guidelines and recommendations. The most important step in this whole exercise is the selection of a good bankruptcy trustee. While choosing a good trustee, you need to consider several different options and get personal recommendations from people you trust. Also, search the Internet to make a list of reputable professionals in your area. Contact each of them and pick the most suitable option. If you wish to be debt free in Victoria, extensive research and proper planning is mandatory.