Consumer Proposal & Bankruptcy Trustee in Burlington, Ontario

We Offer Different Debt Relief Options in Burlington

Consumer Proposal

Whether you are struggling with credit card debt, tax debt or personal loans, a consumer proposal can solve your problems efficiently.

A consumer proposal is a legally binding contract between you and your creditors that consolidates your debt and settles it for less than you owe. Please note that only Licensed Insolvency Trustees (LIT) like Chande Debt Solutions are allowed to file consumer proposals.

Our LITs will work with you to thoroughly review your financial situation to determine how much you can realistically pay back every month. Your LIT will submit the proposal to your creditors for approval, and upon their approval, you will make monthly payments; after all conditions of the consumer proposal are fulfilled, the remaining debt is discharged.

The most significant benefits of a consumer proposal are:

• Discharge up to 75% of your debt
• Stop all legal action, such as wage garnishments or frozen bank accounts
• Stop all collection calls
• Keep all assets, including tax refunds
• No additional interest on any debt included in the proposal

Debt Consolidation Vs. Consumer Proposal

Debt consolidation involves getting a loan (whether as debt consolidation, home equity or a second mortgage) to consolidate different debts under one loan. While this has the advantage of not affecting your credit score negatively and keeping you in complete control of your finances, it also comes with some significant drawbacks.

For one, you may not qualify for a consolidation loan or have to put down significant assets as collateral; for the other, it does not solve the underlying issues that led to the financial difficulties in the first place or stop further interest from accruing. Depending on your credit history, the interest rates on consolidation loans can be exorbitantly high.

On the other hand, a consumer proposal will affect your credit score and you can only cover unsecured debts (i.e. credit card debt, personal loans, tax debt or, depending on their age, student loans). However, it will allow you to discharge up to 75% of your debt owed, stop all legal action and collection calls, and any additional interest on the debt included in the proposal.

Personal Bankruptcy

Personal bankruptcy is the most radical approach, but sometimes the circumstances don’t leave you many choices. It is commonly seen as a last resort when you can’t afford to pay back any of your debt and can be a quick and relatively cheap way to get out of debt. In many cases, personal bankruptcy can be completed, and your debt discharged within as little as 9 months.