Procedures For A Consumer Proposal Application

By Ida Dorsey


When you are placed in a situation where you either go file a bankruptcy report or flee to an unknown island, it would be much better to do something else other than those two. In Toronto, ON, there is a method where you can save your dying credit score and still own all your properties. Well, this is if as long as you are eligible for the program.

This method is only available for those who are qualified, but this can definitely work for those people in a certain situation. Consumer Proposal Toronto is a way that you save lower the damage to your credit score and would let you keep your properties. The creditors are mediated in a way by a board of trustees.

Although you need to keep in mind that this is not freedom from creditors and that you no longer have to pay. It is not like that and you still have to pay them, but on a better and more comfortable terms that you would be able to comply with. They can give you as much as five years to pay back within a monthly basis or depending on your surplus income. There would be a meeting with your creditors, the trustees, and you to decide on this.

There are specific effects that would happen. This includes that the monthly wage garnishments from your creditor would stop, the interest for the debt would stop as well at the day that the application was successfully processed, and the creditors are no longer allowed to contact you for you to pay since it is part of the law. Another advantage is that you can keep your stuff.

And then there is the concern with your property being threatened to be taken away by your creditor, but no, it would still be safe and sound in your premise. They would not take that as well as the interest would no longer pursue on and you will be paying in a fixed amount. But you still have to pay them, of course, slowly though.

The credit score that you have would not plummet to the lowest which is R9, rather, it would just go down to a more tolerable level of R7. The bankruptcy would be held at bay and you could get away from it. This process definitely helps you with that.

What the creditors would do most likely is that they would probably support you in this decision since if you go bankrupt then that means they cannot get any sort of payments at all. With this, you can still pay them, although in lesser terms. But rather than getting nothing, they could at least get payments somehow.

But before celebrating on this method, take note of the range of debt that you are allowed to have in order to get this. It should be within five thousand to about two hundred and fifty thousand dollars. But this also includes that you need to have a job that can sustain you. The reason you would get this is just because you cannot pay back immediately at the given amount.

There are some aspects in this method that will not help you with. The car loans, student loans, and alimony obligations would not be included for the type of debts that the trustees can help you on. But of course, they can advise you on other methods for those, so there is still an option for you. It also does not deal with your loans from mortgage, too.




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