DEBT RELIEF OPTIONS IN ORILLIA, ONTARIO
A consumer proposal is a highly effective solution to various debt challenges involving credit card debt, tax obligations, or personal loans.
If you find it challenging to repay your original debt, don’t qualify for debt consolidation, or have debts exceeding the value of your assets, a consumer proposal may be the optimal solution. This legally binding contract between you and your creditors consolidates and settles your debt for less than the total owed.
Collaborating with our Licensed Insolvency Trustees (LIT), you’ll assess your financial situation to determine the suitability of a consumer proposal. Subsequently, they will establish a realistic monthly payment plan. Your LIT will then submit the proposal to your creditors for approval, and upon acceptance, you’ll make monthly payments. Once all conditions of the consumer proposal are met, 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 essential to note that only Licensed Insolvency Trustees (LIT), like Chande Debt Solutions, are authorized to file consumer proposals.
Debt Consolidation vs. Consumer Proposal
While debt consolidation is a common approach to debt management for many Canadians, it comes with advantages and disadvantages. Although it does not adversely affect your credit score (as long as payments are timely), high interest rates on loans and the risk of retaining other high-interest financial resources can pose significant drawbacks.
In contrast, while affecting your credit score, a consumer proposal offers substantial benefits, including the potential discharge of up to 75% of your debt, cessation of legal actions and collection calls, and avoidance of additional interest on included debts.
Personal Bankruptcy
Personal bankruptcy is often viewed as a last resort when other options have been exhausted. While it provides a swift and cost-effective way to eliminate debt, it has notable consequences for your credit score and assets. In certain circumstances, however, it may be the only viable choice.
