Hamilton Consumer Proposal: Help Avoiding Bankruptcy

A high debt load that never seems to go down no matter how hard you try can have a serious and long-term financial and emotional impact on you and your loved one.

The ongoing stress of having to avoid calls from collections agencies, the difficulty of trying to manage your household budget and the stress of dealing with financial issues can be tough to deal with. With credit card and store card interest rates varying from 20% to 30%, it is often difficult to get out of debt.

If you are only making monthly minimum payments on your credit cards or only making partial payments on your debts, these are clear signs that you need to do something about your debt situation.

Fortunately, there are several options available to individuals who are facing these financial challenges. Options include:

We can provide you with the information and options you need to avoid filing for a bankruptcy if at all possible.

There are positives and negatives to each of the options listed above. The solution that is best for you will depend on your unique circumstances such as:

  • your monthly income;
  • how much debt you have;
  • how many people in your family
  • the value of your unsecured assets.

Many Hamiltonians as well as Canadians today choose to file a consumer proposal to deal with debt issues. A consumer proposal offers a number of advantages compared to other forms of debt management.



Why Consumer Proposal in Hamilton?

A consumer proposal is a formal procedure that is regulated by the Federal government where you prepare a formal offer to your creditors and offer to pay a portion of your debt in full settlement. These debt payments are typically made over a period of time. The amount that you offer to pay is based on your unique financial situation. If your creditors accept the offer, your debts are effectively reduced to the new amount that you have agreed to pay.

What do you have to do to file a Consumer Proposal?

file a consumer proposal in HamiltonIf you decide that a Consumer Proposal in Hamilton is the right debt management option for you, you will need to meet with a certified Proposal Administrator who is licensed by the government.

Proposal Administrators have experience in dealing with creditors on such issues. Therefore, the chances of a consumer proposal being accepted is very high, assuming that your offer is reasonable. In most cases, you will receive a free consultation with the Proposal Administrator. During this consultation, the administrator will review your specific situation and decide upon a fair offer to your creditors.

The offer is then submitted to all your creditors. Your creditors then have 45 days to decide to accept your offer. If your offer is fair, it will generally be accepted by a majority of your creditors. Once this happens, the proposal becomes binding on all of your creditors. At that point, the benefits described above come into effect. If the majority of your creditors do not accept your proposal, you and your debt administrator can make revisions to the proposal and submit the new offer.

During the negotiation stage, you still receive protection from your creditors. They cannot take any other action to collect their debt. Once the offer is approved, it is crucial that you fulfill your obligations and make your monthly payments on time every month. If you do so, at the end of the period (which is usually 60 months) you will be given a Certificate of Full Performance.

This will eliminate the unpaid portion of your debts and you can start with a clean slate.


Why Would Your Creditors Accept Your Proposal?

consumer proposal offer is determined by your specific circumstances. Specifically:

  1. the size of your debt;
  2. the number of dependents that you have;
  3. your after tax income;
  4. what your creditors would have received had you declared bankruptcy, and
  5. your monthly living expenses

Your creditors  use this information when reviewing your offer to determine if the offer is fair to them compared to the alternatives. For example, if your other alternative is to declare bankruptcy, your creditors may get nothing. Therefore, it would be in their interest to accept your offer.


Ready to solve your financial problems?


A.Farber Consumer Proposal

To Get Relief from your financial stress & stop those harassing creditor phone calls, complete the form on the right or call phone   310 – 1100 (no area code needed) .

We will contact you as soon as possible to set up a FREE appointment, no obligation!

Confidentiality guaranteed!

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