Thinking about filing a Consumer Proposal?
Every person goes through a rough patch in their life, which is a quite difficult period to deal with. But if it’s a financial mishap, it becomes much harder for you to deal with. When such financially disastrous things happen, people usually choose either filing for a bankruptcy or a consumer proposal. If you’re facing such a hard time, you must definitely educate yourself about both of these options and eventually make the right decision. After all, you should also consider doing this while ensuring that only a minimal damage happens to your credit score.
Here are a few reasons to consider about a Consumer Proposal:
Although Bankruptcy is a much popular option among the masses, you should be smart to do your due diligence and find whether bankruptcy is the way to go, or a consumer proposal.
• Creditor Protection: A consumer proposal is usually equipped with the feature of creditor protection. If your consumer proposal has been accepted, your creditors won’t be bothering you for the total amount of money you owe. This simply translates to that your creditor will not harass you with phone calls.
• Securing your assets: If you file for bankruptcy, more often than not majority of your assets will be liquidated to pay your creditors. But, a Consumer Proposal does exactly the opposite, where you will be able to secure your assets.
• Custom-tailored Payment Plans: With a consumer proposal, the terms and conditions of your payment plans can be customized, which allows you to pay what you can manage and have something for you to live on.
• 0% interest: In most cases your credit cards interest will be frozen for duration of the consumer proposal, so you can focus on putting extra cash into the balance of your proposal, so you can get back on track faster.
Both consumer proposal and bankruptcy negatively affect your credit, so you need to consult your local trustee company. Please consider opening small limit credit cards, for the sake of re-building your credit, after you finish paying off your consumer proposal. As it might take from 6 to 24 months to be in a better financial shape with your credit.