If you are struggling with debt and bad credit, but want to avoid going bankrupt, or have been denied for a bank debt consolidation loan, then there are many advantages to filing a consumer proposal.

What is a Consumer Proposal?

To file a consumer proposal, you must speak with a trustee such as Kevin Thatcher & Associates. The proposal can only be filed through a trustee. Once you have filed they must send a proposal to your creditors, requesting that they accept the payments terms you have offered based on your situation. If your proposal is accepted then the repayment begins usually over afive year period. For instance, if your debt is $60,000, then depending on your situation you could negotiate to pay back 40% of that debt.

What Are the Benefits?

There are many benefits to filing a consumer proposal:

• Filing a consumer proposal shows that you are taking charge of your money problems and trying to actively find a solution.
• Payment is fixed. If you declare bankruptcy then your trustee receives a detailed report of your income each month. What this means is that if you make more money for whatever reason, perhaps a raise or a bonus, then you are required to make higher payments. If you, however, file a consumer proposal and reach a deal with your creditors, then the payment remains fixed, which is easier to budget around and makes it easier for you to get back on your feet.
• If a deal is reached, it consolidates all your debts, which mean you make only one fixed payment per month.
• Once a consumer proposal is accepted, creditors can no longer garnish your wages.
• A consumer proposal also means that your assets, for instance your car or house, will remain in your hands.
• Once you file a proposal, as long as you meet the terms the included creditors will no longer be owed and there will be no additional interest accumulated.

As you can see, there are many major benefits to filing a consumer proposal. Aside from keeping you from having to file bankruptcy, filing a proposal is a good way to manage your financial problems and help you get back on your feet. Debt can be a long, hard struggle, but making a deal with your creditors shows integrity and the willingness to work to make things right.

If you are considering filing a consumer proposal, the first thing you need to do is speak to a trustee. Contact Kevin Thatcher and Associates today, to get yourself started on the right path.