{"id":10225,"date":"2021-05-03T08:10:24","date_gmt":"2021-05-03T15:10:24","guid":{"rendered":"https:\/\/www.sands-trustee.com\/?p=10225"},"modified":"2025-10-09T19:58:17","modified_gmt":"2025-10-10T02:58:17","slug":"10-facts-you-should-know-about-consumer-proposals","status":"publish","type":"post","link":"https:\/\/www.sands-trustee.com\/blog\/10-facts-you-should-know-about-consumer-proposals\/","title":{"rendered":"10 Facts You Should Know About Consumer Proposals"},"content":{"rendered":"\n

Consumer Proposals are a powerful debt solution, a popular substitute to traditional consolidation loans, and Canada\u2019s number one alternative to personal bankruptcy. Working with a Licensed Insolvency Trustee you will develop an offer to pay your creditors a percentage of the debt you owe, stop all future interest charges, and gain protection from creditors.<\/p>\n\n\n\n

Although Consumer Proposals have been enshrined in law for more than 20 years and a majority of individuals who work with Licensed Insolvency Trustees choose to file proposals rather than bankruptcy, the fact remains that Consumer Proposals are still lesser known compared to debt management strategies such as credit counselling programs and consolidation loans.<\/p>\n\n\n\n

If you\u2019re considering solutions to get out of debt, wondering about some of best ways to pay off debt or just starting to research your legal debt options, read on to learn the top 10 facts you should know about Consumer Proposals.<\/p>\n\n\n\n

Built-In Consumer Proposal Features <\/strong><\/h2>\n\n\n\n

Many people are surprised to learn about the unique ways a Consumer Proposal can help them manage their debt, and the benefits outlined below are built into the Consumer Proposal process without needing to be negotiated with creditors:<\/p>\n\n\n\n

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  1. Automatically Stops Interest Charges<\/u><\/li>\n<\/ol>\n\n\n\n

    Ongoing interest being charged on your debts can make it difficult to pay off even a modest balance, with higher interest debts like credit cards seeming nearly impossible to pay down if only minimum payments are made. When you make a Consumer Proposal to your creditors this triggers a legal status known as a \u201cstay of proceedings\u201d which will freeze your debts – this means that ongoing interest your creditors have been charging is stopped automatically, without negotiation.<\/p>\n\n\n\n\n

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    Removing interest charges from debt payments makes Consumer Proposals one of the most affordable options to pay off debt, with monthly payments usually substantially lower than other strategies.<\/p>\n\n\n\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n \n\n\n\n\n

    This stay of proceedings has another layer of benefit to you in that it also means creditors can no longer contact you for payment, even if your accounts have fallen behind. Your Licensed Insolvency Trustee (the administrator of your Consumer Proposal) will step into your shoes and take on communication about your debts on your behalf.<\/p>\n\n\n\n

    Any creditor harassment and collection actions including phone calls, court proceedings and even wage garnishments must cease immediately upon filing your Consumer Proposal.<\/em><\/p>\n\n\n\n

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    1. Flexible Debt Repayment Terms Tailored to Your Needs <\/u><\/li>\n<\/ol>\n\n\n\n

      Interest isn\u2019t the only thing being cut with a Consumer Proposal – you can also reduce the amount of debt you need to repay down to a balance you can actually afford. Most often Consumer Proposals will offer creditors a portion of the debt they owe, with creditors agreeing to write-off\/forgive the unpaid balance. Consumer Proposals are individually calculated<\/a> with your specific circumstances, objectives and needs in mind.<\/p>\n\n\n\n

      Your Licensed Insolvency Trustee will help you work out a suitable offer to your creditors that takes into account your personal financial situation including your household budget, the amount of debt you can afford to repay and other financial goals you may have.<\/p>\n\n\n\n

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      \n GET A FINANCIAL<\/span>\n FRESH START <\/h2>\n

      Book your free consultation with one of our experts and start living a debt-free life.<\/p>\n \n BOOK YOUR FREE CONSULTATION <\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n\n

      The guidelines around Consumer Proposals give you lots of flexibility in terms of how long your have to make your proposal payments and how much of your debt you repay. Unlike many consolidation loans that can last 7 or 10 years, a Consumer Proposal will last for a maximum<\/em> of 5 years, and terms of 2-3 years are quite common.<\/p>\n\n\n\n

      Another advantage of the flexibility in Consumer Proposals: You are free to make additional payments to get ahead on your Consumer Proposal and even pay it off early at any point \u2013 without penalty.<\/p>\n\n\n\n

      Learn More About Consumer Proposal Advantages and If a Consumer Proposal Could be Right for You<\/a><\/p>\n\n\n\n

      Although most people will opt for monthly Consumer Proposal payments, it is possible to make a Consumer Proposal that offers your creditors a single lump-sum payment in full settlement instead of making monthly payments.<\/em><\/p>\n\n\n\n

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      Compare Your Debt Options<\/h2>\n
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      Enter your total amount of debt (excluding mortgage and car loan) and we’ll show you a list of options.<\/p>\n

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      Consumer Proposal Examples<\/strong><\/h3>\n\n\n\n

      Here are two examples of real Consumer Proposals filed for BC residents that illustrate the dynamic terms that can be offered to settle debts in full.<\/p>\n\n\n\n

      Single parent who was struggling to manage their debt payments after the breakdown of their marriage:<\/em><\/p>\n\n\n\n