Consumer Proposals in Ottawa & ANYWHERE in Ontario
Serving Residents of Eastern Ontario, Including Kingston, Brockville, and Surrounding Areas
Are you saddled by large consumer debts? Are you having difficulty paying your credit cards and are considering bankruptcy? A consumer proposal may be the best way to help you avoid bankruptcy and achieve real relief from your outstanding debts.
​
Unlike a bankruptcy settlement, your assets are actually protected under a consumer proposal. This means, in many cases, a consumer proposal may incorporate in the payment amounts, which will allow you to retain your home, investments, and other non-exempt assets that would otherwise be surrendered in a bankruptcy. Another benefit is that the payment, once accepted, will never go up.
​
If you’ve been looking for ways to get out of debt, or are considering consumer proposals, Ottawa, Kingston, Brockville and Eastern Ontario residents are encouraged to contact D. & A. MacLeod Company Ltd. to speak with our debt-relief specialists. Call us today for a free initial consultation and get started on a debt-free tomorrow!
WHAT IS A CONSUMER PROPOSAL?
A consumer proposal is a formal, legal procedure under the Bankruptcy and Insolvency Act (BIA) which allows an individual to compromise his or her debts owing in order to resolve financial obligations. If accepted, the terms and conditions of the consumer proposal become a legal binding agreement.
If you move forward with a consumer proposal in Ottawa, Kingston, or surrounding areas of Eastern Ontario, the process will be facilitated by a Licensed Insolvency Trustee (LIT), known as the “Administrator.” The Administrator will assist in developing the proposal which generally requires the debtor to pay a percentage of what may be owed, or extend the time to pay.
.jpeg)
ADVANTAGES OF A CONSUMER PROPOSAL OVER FILING FOR BANKRUPTCY
​The payment terms are negotiable and tailored to an individual’s circumstances, while payments in a bankruptcy are set out in the directive known as the Superintendent’s Standards.
In some situations, you may wish to save an asset such as a home, RESP, life insurance policy with cash surrender value, etc., but with bankruptcy you may not be able to pay the amount due to the trustee and the asset will be required to be sold or realized on. Payments can be incorporated in a consumer proposal to retain the asset.
​Monthly payments are agreed upon in a consumer proposal that can be up to five years in duration, while in a bankruptcy the payment amounts can increase or decrease, depending on each month’s income.
​The credit bureau reporting by your unsecured creditors will be better once the proposal terms have been met. A consumer proposal can typically result in an R7 credit rating, while in bankruptcy, your credit rating will be R9 (the worst rating on a scale of R1 to R9);
​You are entitled to have a secure credit card (which may be important to conduct business or required for other financial reasons).
​Your credit rating can be improved sooner with a consumer proposal, which remains on your record for 3 years. In comparison, a second bankruptcy can remain on your credit rating for 14 years.
HOW THE CONSUMER PROPOSAL PROCESS WORKS IN OTTAWA: STEP-BY-STEP
Filing a consumer proposal can seem complex, but understanding the process step-by-step can help you feel more confident about taking control of your debt. Here’s a clear, easy-to-follow guide to how it works:
-
Free Initial Consultation
Meet with a Licensed Insolvency Trustee (LIT) for a free, confidential consultation. The LIT will review your financial situation, including your debts, income, and assets, to determine if a consumer proposal is right for you.
-
Proposal Preparation
If a consumer proposal is suitable, your Licensed Insolvency Trustee will prepare a formal proposal outlining how much you can afford to repay and over what period (up to 5 years). This proposal is legally binding once accepted.
-
Filing the Proposal
The Licensed Insolvency Trustee files the consumer proposal with the Office of the Superintendent of Bankruptcy Canada (OSB) and notifies your creditors. At this point, all collection calls and legal actions against you must stop immediately.
-
Creditors Review and Vote
Your creditors have 45 days to review the proposal and vote to accept or reject it. The proposal is accepted if creditors holding the majority of your debt agree to the terms.
-
Making Payments
Once accepted, you begin making the agreed monthly payments to the licensed insolvency trustee, who distributes the funds to your creditors. Payments remain fixed and affordable based on your budget.
-
Completion and Debt Discharge
After you complete all payments under the proposal, your remaining unsecured debt included in the proposal is legally discharged. You are debt-free from those obligations.
-
Credit Rebuilding
After your consumer proposal is completed, you can start rebuilding your credit.
FREQUENTLY ASKED QUESTIONS
CONSUMER PROPOSALS IN OTTAWA & ACROSS EASTERN ONTARIO
Team up with D. & A. MacLeod Company Ltd.and let our family help your family and provide professional advice regarding your specific financial situation. A consumer proposal may be the right alternative to free you of your debt burden and start a new beginning™.
​
We can meet you in any one of our convenient locations to answer questions you may have about consumer proposals in Kingston, Ottawa, Cornwall, Pembroke, Smiths Falls, Brockville or anywhere in Canada.
Contact us today online or at 613-236-9111 for a free, confidential consultation at one of our locations.
LEARN MORE ABOUT CONSUMER PROPOSALS
Read through our latest blogs to dig deeper into the world of consumer proposals and debt management.
