Why Choose a Consumer Proposal?

You make a decent income and own your own home but can’t seem to reduce your total debt load even though you make your monthly payments on time. The 29% interest charged on some credit cards makes it difficult to reduce the principal debt owing. A consumer proposal may be the solution that will finally provide you a plan to eliminate your debt. A few benefits to a consumer proposal over a bankruptcy are:

1. You retain your assets (house, RESP, etc) in a consumer proposal.
2. One monthly payment that you can afford is paid to the Trustee to settle all your unsecured debt.
3. No further interest is accumulated.
4. Reported on your credit bureau as an R7 for three years from the completion of the proposal. This is a slightly better rating than a bankruptcy.
5. A consumer proposal does not have the same personal impact, in certain circumstances, as a bankruptcy. Loan and employment applications typically do not ask if you have ever filed a consumer proposal.
6. Future increases in income are retained by you. The creditors can’t request a higher payment once the proposal is accepted.
7. Future assets are retained by you. A lottery windfall or inheritance is not seizable by the Trustee or your creditors.
8. Regulatory bodies typically look more favorably on a consumer proposal than a bankruptcy.
9. With the voting structure, difficult creditors may be forced to accept the terms of the proposal.

Additionally, we find that debtors feel better about doing the best they can to repay debt they have incurred. If you are struggling to reduce your debt, contact Taylor Leibow Inc. and we will schedule a free, initial consultation to review your financial situation and determine if a consumer proposal is the best option for you.


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