Why Choose A Consumer Proposal?
Repay only a portion of what you owe without the impact of bankruptcy.
A Consumer Proposal is a restructuring option that over 45,000 Canadians take advantage of per year! A Consumer Proposal will provide protection from your creditors under a Federal Statute, and you will usually only repay an interest-free portion of what you owe.
A consumer proposal is filed through a Licensed Insolvency Trustee (LIT). A LIT is a professional licensed by the Office of Superintendent of Bankruptcy to administer the process of filing a Consumer Proposal under the Bankruptcy and Insolvency Act in Canada.
4 Pillars is not a LITs and cannot file your Consumer Proposal, but 4 Pillars is committed to ensuring you thoroughly comprehend all options available. We present impartial information for your consideration. If you opt for a Consumer Proposal, we will facilitate your connection with a reputable LIT, who will meticulously prepare and file the consumer proposal.
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Consumer Proposal Frequently Asked Questions
Questions about the consumer proposal process, eligibility requirements, and which debts you can include? Take a look at our frequently asked questions!
You must be insolvent to file a consumer proposal (debts are more than assets) and have a stable source of income or ability to make proposed payments.
No, you are not able to pick and choose the debts that are included; all debts must be included.
No, you cannot eliminate support or alimony obligations.
You cannot eliminate student loans under seven years since your date of last study.
You cannot include secured debts such as mortgage and car loans.
The repayment period depends on your situation, but it can be up to 60 months, or 5 years.
Most wage garnishments cease immediately.
Interest stops accumulating from the day the consumer proposal is filed.
No. Collection agencies and creditors can no longer contact you after your consumer proposal is filed.
Consumer proposals do less damage on your credit bureau rating than a bankruptcy by reporting as a R7 instead of a R9. Further you can start rebuilding your credit in a proposal by getting some sort of credit.
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