Considering Bankruptcy? What You Should Know About Consumer Proposal Services

Posted on: 18 July 2019

Life circumstances change quickly and unexpectedly sometimes, which can often present difficulty making the payments that you previously had no problems with. Whether you have lost your job or had a major unexpected expense arise, this can leave you wondering what your options are. Before you resort to filing for bankruptcy, you should consider reaching out to a company that offers consumer proposal secured debt services instead. Here are a few reasons why you should consider a consumer proposal instead of bankruptcy to address your financial struggle.

Available For Those With A Range Of Debts

A consumer proposal is available for any consumer or individual with a level of debt as low as $1,000. You are eligible to seek this type of resolution for debts that amount to as much as $250,000, excluding your mortgage. If your level of debt exceeds $250,000, you will need to consider filing for bankruptcy instead. 

You Won't Lose Your Assets

When you file for bankruptcy, you typically must forfeit all but the exempted assets in an effort to repay creditors. Opting for a consumer proposal instead means that you can keep those assets. The consumer proposal is a renegotiation of your payments and your balance due. Since you are still paying for the items, you will not have to give them up.

This includes your future tax refunds and tax credits. Remember that, when filing for bankruptcy, you will often have to forfeit your tax refunds as well toward the creditor balances. A consumer proposal preserves your tax refunds so that you still receive that money.

You Will Have A Fixed Payment

Part of the consumer proposal process is consolidating all of your debts into a single payment. The negotiations end with one single payment amount that you must make every month. You can negotiate this amount based on your income and expenses, so make sure you know what you can reasonably afford before you enter into those negotiations.

There Are No Further Reporting Requirements

Bankruptcy filings mandate that you report on your income and expenses monthly after the filing. Those reports can prove to be time consuming and overwhelming. Instead of finding yourself facing these monthly reports for the foreseeable future, opt for a consumer proposal instead. Once the agreement is reached, there are no further reports of your income or expenses required.

For more information, contact a consumer proposal service near you today.


Keeping Your Finances In Check

When I started working from home, I realized that my pay was going to be a little more unpredictable than it had been in the past. However, I realized that with a few proper money management skills, I might be able to make my financial situation work--no matter when I got paid. I started keeping a very strict spreadsheet about all of my finances, and it was amazing to see how much that simple act helped. My blog is all about helping you to learn how to keep your finances in check, so that you don't struggle with decisions about money.

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