With so many debt relief options out there, deciding on the right one can be confusing. So, how do you decide if a consumer proposal is the right debt solution for you?
The good news is that you do not have to make this decision on your own. During your initial consultation, a BDO Licensed Insolvency Trustee will review your financial situation and explain every available option for eliminating your debt. A consumer proposal may be the best way to help you get out of debt if:
If you file a consumer proposal with a Licensed Insolvency Trustee, you will be able to:
A consumer proposal allows you to pay off your debts without filing for bankruptcy, and it offers many protections and advantages over other debt relief plans. A consumer proposal and bankruptcy have one important advantage over other debt solutions: they are legally binding. Once the proposal or bankruptcy is accepted, you are protected by the courts and your creditors can’t take legal action against you. A consumer proposal will also allow you to pay back a portion of the debt you owe, as opposed to a Debt Management Plan (from a credit counselor) or a debt consolidation loan, which require you to repay your debts in full.
With that in mind, there are several key differences between a consumer proposal and bankruptcy. Here are a few things to consider when deciding which one is right for you: