DEBT RELIEF OPTIONS IN HALTON HILLS
Consumer Proposal
A consumer proposal is a practical and legal way to manage multiple unsecured debts, such as credit card balances, tax obligations, and personal loans.
If debt consolidation isn’t a viable option for you, or if your total liabilities exceed your assets, a consumer proposal could offer a manageable path forward. This legally binding agreement consolidates your debts into a single, reduced payment plan, simplifying your finances.
At Chande Debt Solutions, our LITs work with you to assess your financial circumstances and determine whether a consumer proposal is your best option. From there, we create an affordable repayment plan to present to your creditors for approval. Once the proposal is accepted, it becomes enforceable by law, with payments made directly to the trustee. Upon completing the terms of the proposal, any remaining qualifying debt is forgiven.
Benefits of a Consumer Proposal:
- Forgiveness of up to 75% of your debt
- Protection from legal actions like wage garnishments or account freezes
- End to creditor collection calls
- Retention of all personal assets, including tax refunds
- No additional interest on included debts
Remember, only Licensed Insolvency Trustees are authorized to file consumer proposals, ensuring you receive expert guidance throughout the process.
Debt Consolidation vs. Consumer Proposal
Debt consolidation can be an appealing choice for many Canadians, but it comes with both advantages and limitations. While timely payments typically preserve your credit score, high interest rates associated with consolidation loans and the need to maintain other credit accounts can be challenges.
In contrast, a consumer proposal may impact your credit score but offers significant advantages, such as reducing debt by up to 75%, halting legal actions and collection efforts, and freezing interest on outstanding balances.
Personal Bankruptcy
Bankruptcy is often considered a last resort for resolving financial difficulties. Though it substantially impacts your credit and assets, it provides a quick and effective solution for eliminating unmanageable debt. In some cases, bankruptcy may be the most suitable course of action to regain financial stability.
