DEBT RELIEF OPTIONS IN NIAGARA FALLS, ONTARIO
Consumer Proposal
A consumer proposal is one of the most effective ways to tackle overwhelming debt, whether it’s from credit cards, taxes, or personal loans.
This option might be ideal if you can’t qualify for a debt consolidation loan, are unable to repay your full debt, or if your debt surpasses the value of your assets.
A consumer proposal is a legally binding agreement between you and your creditors that consolidates your debt and allows you to settle it for less than the total amount owed. Our Licensed Insolvency Trustees (LIT) will work with you to assess your financial situation and determine if a consumer proposal is the best solution. We will then help you establish an affordable monthly payment. Your LIT will submit this proposal to your creditors for approval, and once it’s accepted, you’ll make monthly payments. After fulfilling the terms, the remaining debt will be discharged.
Key benefits of a consumer proposal include:
- Discharging up to 75% of your debt
- Stopping all legal actions, such as wage garnishments or frozen bank accounts
- Ending all collection calls
- Retaining all assets, including tax refunds
- No additional interest on any debt included in the proposal
It’s important to note that only Licensed Insolvency Trustees, like those at Chande Debt Solutions, are authorized to file consumer proposals in Niagara Falls.
Debt Consolidation vs. Consumer Proposal
Many Canadians consider the pros and cons of debt consolidation versus a consumer proposal. While debt consolidation in Niagara Falls can help maintain your credit score (as long as payments are made on time) and allows you to deal exclusively with your financial institution, it also has its drawbacks.
Personal or home equity loans often carry high interest rates, and depending on your credit and payment history, you may not qualify at all. Furthermore, with a consolidation loan, you may continue to have access to high interest credit cards and other accounts, meaning that without adjusting your spending habits, underlying financial problems may persist.
In contrast, while a consumer proposal does affect your credit score and only covers unsecured debts (like credit card debt, personal loans, tax debt, or possibly older student loans), it offers significant advantages. These include the ability to discharge up to 75% of your debt, halt all legal actions and collection calls, and stop any additional interest on the debts included in the proposal.
Personal Bankruptcy
In some situations, personal bankruptcy may be the only feasible option. Generally viewed as a last resort when all other options have been exhausted, bankruptcy offers a quick and cost-effective solution to debt problems. However, it has serious consequences, including a substantial impact on your credit score and the loss of any non-exempt assets. Let Chande Debt Solutions be your bankruptcy trustee in Niagara Falls!
