If you're struggling financially, you may have considered filing for bankruptcy. But filing a consumer proposal Richmond or elsewhere might be a better option.
You can get the relief you need without going through the bankruptcy process. Keep reading to learn more about a consumer proposal Vancouver.
What Is a Consumer Proposal?
A consumer proposal is a formal process where you work with a Licensed Insolvency Trustee (LIT) to prepare a proposal to people you owe money to, in order to reduce the extent of your debts.
A consumer proposal allows you to make a lumpsum payment or monthly payments up to maximum of 5 years (60 months) to settle your debts.
You retain possession of all of your assets subject to any security claim on the asset.
How Does It Work?
The consumer proposal is filed with the Office of the Superintendent of Bankruptcy (OSB).
Once you file a consumer proposal, your creditors are prevented from taking any legal action against you such as garnishing your wages.
Your creditors will receive the consumer proposal, and they will have 45 days to accept or reject it.
If no creditors’ meeting is requested at the expiration of the 45 days, the consumer proposal is deemed to be accepted by the creditors.
If creditors who have 25% of the dollar value of total claims filed request a meeting, a meeting must be held within 21 days after the expiration of the 45 day period. During the meeting, the creditors can vote to reject or accept your consumer proposal.
If creditors representing majority of the dollar value of total claims filed vote in favor of the consumer proposal, the consumer proposal is approved.
The consumer proposal is generally deemed to be approved by the Court 15 days after creditor approval.
When Should You Use a Consumer Proposal?
A consumer proposal can be a great way to relieve you of some of your debts. Consider meeting with a LIT to discuss your specific situation.
Then, you can determine if a consumer proposal Richmond or a consumer proposal Vancouver is the right step for you.
Filing a Consumer Proposal Richmond
If you want to lower your debt burden, you may want to consider a consumer proposal Richmond or elsewhere. A consumer proposal can help you refinance your debt without filing for bankruptcy.
So consider it when comparing your options for tackling your debt. A consumer proposal Vancouver could be another place to go.
Are you ready to file for a consumer proposal? Contact Campbell Saunders today.