Main Benefits of a Consumer Proposal

• Stops all collection calls
• Stops all garnishments of your pay
• Stops all future interest charges
• Stops legal actions taken by your creditors
• Avoid filing for bankruptcy
• Protect your assets
• Pay back only a fraction of the total amount you owe
• It is a legally binding agreement. No false promises.
• One affordable monthly payment covers all fees and payment to your creditors
• Proposal payments can be up to a 5-year term. This helps to keep your monthly amount to a reasonable affordable amount
• A better credit rating than a bankruptcy (an R7 vs. an R9 in a bankruptcy) and
• Gives you a Fresh Start. This could be the solution to get yourself out of your debt problems and rebuild your life.

Disadvantages of a Consumer Proposal

• Income or financial assistance (from family or friends) is required to fund the monthly proposal payments
• Creditors vote if they want to accept or reject your proposal
• Not all debts are discharged (erased) and
• Results in an R7 credit rating and stays on your records for 3 years after your last payment.