Consumer proposals are increasing day by day all over the world! So, what exactly is this consumer proposal? It is a sort of an arrangement in which you come up with a negotiation with all your creditors through a licensed insolvency trustee who acts as the Consumer Proposal administrator. It is regarded as the best way to avoid slipping into bankruptcy. It is a negotiation in which you agree to pay up a certain portion of the debt you owe, and the rest of the portion is forgiven by the creditors. click here to know more about consumer proposals and how it helps you to pay up the debts. The link https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/31394/11-970-empowering-protecting-consumers-consultation-on-institutional-changes.pdf provides an insight into the details of consumer proposals and the formalities involved in that.
Here are some important points regarding consumer proposals:
Lends A Helping Hand To Settle All The Unsecured Debts
You might be drowning in a pool of debts, and consumer proposals act as the perfect lifesaver and help you to rise from the pool with dignity! You can be assured that you can retain the car as well as the house and never need to fear about losing your precious possessions. The consumer proposal only deals with the unsecured sums of debt. It helps you to settle the pending bills, credit card settlements, the margin of credits, etc. The secured debts like house, car, etc. remain safe as long as you pay the fixed sum on a regular basis.
Steer Clear Of Bankruptcy Fears!
As soon as you file for the consumer proposal, the proposal will be reported to both the Credit Bureaus like TransUnion and Equifax. The consumer proposal is submitted along with the R7 note. It implies that you agree to vouch for the payment of debts. Though the R7 seems to be difficult, it is a far better option than attaching the R9 note. The R9 note denotes bankruptcy. Debtors usually have a long history of missing payments and their credit scores will be too low. Consumer proposal helps you to renew the credit score and opt for a fresh beginning.
Make Single Payments! No Multiple Transactions And Multiple Dates!
When you make a consumer proposal request, you just have to make a single payment per month to the trustee. The trustee will be responsible for dividing the money and giving it to all your creditors based on the amount you had borrowed from each one of them. Hence, it makes it easier for you as you need not remember multiple dates and makes multiple transactions. But, always ensure that you never miss that single monthly payment. Even if you miss it once, the whole proposal turns void.
The Wings Of Law Secures You!
The consumer proposals come under the exclusive Bankruptcy And Insolvency Act Of Canada. This act protects you from the possibilities of bankruptcy, lawsuits by creditors as well as from garnishments. No other debt settlements or consolidations have such a protective cover by the law. Hence you can finally heave a sigh of relief and cast away the fears as the law itself hovers over you as a blessing in disguise.