Advantages of a Consumer Proposal
Consumer proposals are government approved documents that help someone in Canada to settle his or her debts. Most people prefer the consumer proposal to declaration of bankruptcy. Sometimes in life people find themselves in so many debts that they are not able to pay and that is the reason most people will go for bankruptcy and others will choose to file a consumer proposal. Bankruptcy has so many disadvantages that make people opt to file a consumer proposal to settle their debts. When you file a consumer proposal it becomes very easy for you to pay your debts because the agreement protects you from debt collectors pressure and stress. Most of the creditors prefer the consumer proposal deal to the bankruptcy one because they at least get some partial payment. When you qualify for a consumer proposal agreement which half of your creditors should accept for you to qualify, you attend two credit counseling sessions to be guided on budgeting skills. Here are some of the benefits of a consumer proposal.
One of the main advantages of a consumer proposal agreement is the protection of your assets like cars, house, land and any other asset. It gives people peace and they become comfortable in their lives because they have no fear of their property being taken away. In a case whereby you start earning more cash than before the money is still protected and you continue paying your loan just the same way as you started paying it. In bankruptcy your assets are at a risk of being taken by creditors but in a consumer proposal you always know the property is protected.
Your monthly payments lower after you file a consumer proposal. A consumer proposal gives you a plan on how you will pay your debt each month. Most debts are even at times reduced by a very big percentage of the actual debt that someone has. The consumer proposal is safe and best in terms of debt consolidation options. There are some savings got over debt consolidation because no interests during the consumer proposal period.
Another advantage of a consumer proposal is that someone acquires consumer protection. In this it means that no creditor is allowed to stress you because you already have a legal document of how you should pay him or her. If your consumer proposal has been accepted by half of your creditors, then there is no exemption of any creditor because they all should abide by it whether they accepted the proposal or not. The act that covers the consumer proposal is known as the act of bankruptcy and insolvency.