In many cases, the debtor was unaware of what services were
part of the consumer proposal process, and which services were provided by the debt consultant.
Since the
impact of a consumer proposal or a debt management plan on your credit report is the same, a consumer proposal is a better option for most people.
If you are at the point where you think you do not have any other options to deal with your debt,
think of a consumer proposal or bankruptcy as an opportunity.
Legislative solutions, governed by federal law, typically come in the
form of consumer proposals, which are now more commonly used than bankruptcy filings.
The
goal of a consumer proposal is to make your monthly payments more realistic and affordable, without the need to take out any kind of additional debt.
The biggest
advantages of a Consumer Proposal are that the payments are designed to be affordable, interest is eliminated, and the amount of debt you owe is reduced.
Tools, tips, and other resources for rebuilding credit, spending habits and savings strategies are provided as
part of the Consumer Proposal and personal bankruptcy processes.
Our experience in filing thousands
of consumer proposals in the Greater Toronto Area has been that creditors do not like dealing with debt consultants.
I'm a Licensed Insolvency Trustee and my firm, Hoyes, Michalos & Associates does
thousands of consumer proposals and bankruptcies for people who turn to debt to make ends meet and eventually found themselves in deeper trouble.
It's for this reason that I was quite pleased to see the Office of the Superintendent of Bankruptcy (OSB) issue a report on their review of the involvement of debt consultants in the
administration of consumer proposals in Canada.
A consumer proposal in Ontario is a legally binding, negotiated debt settlement made between you and your creditors with the
assistance of a consumer proposal administrator.
Doug Hoyes: And in the case
of a consumer proposal if I don't owe any money to Revenue Canada they still find out but it doesn't really affect anything, I'm still getting my refund in the normal way.
Guaranteed approval usually means that lenders accept applications from clients with a
history of consumer proposals, bankruptcies, credit counseling, seriously delinquent accounts, and past collections.
Since the CRA is part of the federal government, and the BIA is federal legislation, wage garnishments and other actions started by CRA can be stopped if you file a procedure under the Bankruptcy and Insolvency Act (either a
bankruptcy of consumer proposal).