DEBT RELIEF OPTIONS IN SUDBURY, ONTARIO
Consumer Proposal
A consumer proposal is a highly effective method for managing significant debt, whether it’s from credit cards, taxes, or personal loans.
This option might be suitable if you don’t qualify for a debt consolidation loan, cannot repay the full amount of your debt, or if your debt exceeds the value of your assets.
A consumer proposal is a legally binding arrangement between you and your creditors that consolidates your debt and allows you to settle it for less than what you owe. Our Licensed Insolvency Trustees (LIT) will assess your financial situation to determine if a consumer proposal is the best course of action. We will then help you establish a manageable monthly payment plan. Once the proposal is submitted to your creditors and approved, you’ll make monthly payments. Upon meeting all the terms, any remaining debt will be discharged.
Key benefits of a consumer proposal include:
- Reducing up to 75% of your debt
- Halting all legal actions, such as wage garnishments or frozen bank accounts
- Stopping all collection calls
- Retaining all assets, including tax refunds
- Eliminating additional interest on the included debt
It’s essential to know that only Licensed Insolvency Trustees, such as those at Chande Debt Solutions, are authorized to file consumer proposals in Sudbury.
Debt Consolidation vs. Consumer Proposal
Many Canadians compare debt consolidation with a consumer proposal. While debt consolidation in Sudbury can help preserve your credit score (as long as payments are made on time) and allows you to deal only with your financial institution, it does have its downsides.
Personal or home equity loans often come with high interest rates, and depending on your credit and payment history, you might not qualify at all. Moreover, with a consolidation loan, you may retain access to high-interest credit cards and other accounts, which could perpetuate financial issues if spending habits aren’t changed.
In contrast, while a consumer proposal impacts your credit score and only addresses unsecured debts (such as credit card debt, personal loans, tax debt, or possibly older student loans), it provides significant advantages. These include the potential to discharge up to 75% of your debt, stop all legal actions and collection calls, and halt any additional interest on the included debts.
Personal Bankruptcy
In certain situations, personal bankruptcy may be the only viable option. Typically considered a last resort after other solutions have been exhausted, bankruptcy offers a quick and cost-effective resolution to debt problems. However, it has serious implications, including a major impact on your credit score and the loss of non-exempt assets. Let Chande Debt Solutions assist you as your bankruptcy trustee in Sudbury!
