DEBT RELIEF OPTIONS IN MILTON, ON
Consumer Proposal
A consumer proposal is an effective way to address multiple debt issues, such as credit card debt, tax liabilities, or personal loans.
If repaying your debts has become difficult, you don’t qualify for debt consolidation, or your debts surpass the value of your assets, a consumer proposal could be an ideal solution. This formal agreement between you and your creditors consolidates your debt and allows for repayment at an amount lower than the original balance.
With the assistance of our Licensed Insolvency Trustees (LIT), you’ll review your financial situation to confirm if a consumer proposal is appropriate. The LIT will then work with you to create a feasible monthly payment plan. Once submitted for creditor approval and accepted, you’ll begin making monthly payments. When all terms of the consumer proposal are completed, the remaining debt is discharged.
- Key benefits of a consumer proposal include:
- Discharge of up to 75% of your debt
- Halt to all legal actions, such as wage garnishments or frozen bank accounts
- Cease all collection calls
- Retention of all assets, including tax refunds
- No additional interest on debts included in the proposal
It’s crucial to note that only Licensed Insolvency Trustees (LIT), like Chande Debt Solutions, are authorized to file consumer proposals.
Debt Consolidation
Debt consolidation is a popular debt management option for many Canadians, offering both benefits and drawbacks. Although it typically doesn’t impact your credit score if payments are made on time, high interest rates on consolidation loans and the risk of maintaining other high-interest accounts can be significant downsides.
On the other hand, a consumer proposal does affect your credit score but provides notable advantages, such as the potential to eliminate up to 75% of your debt, protection from legal actions and collection calls, and relief from accumulating interest on included debts.
Personal Bankruptcy
Personal bankruptcy is often viewed as a last resort when other options have been exhausted. While it is a swift and cost-effective way to eliminate debt, it has notable consequences for your credit score and assets. However, in certain circumstances, it may be the only viable choice.
