CONSUMER PROPOSALS – these are a formal, legally-binding process that is administered by a Licensed Insolvency Trustee (LIT), who works with you to develop a ‘proposal’ – an offer to pay creditors a percentage of what is owed to them or extend the time you have to pay off the debts or both.
These are becoming increasingly popular over the last year. The act was changed in Sept 2009 and the new act encourages (increased the tariff) Trustees to utilize Consumer Proposals over bankruptcies. The premise is similar to the Debt Negotiation and a deal is made with the creditors.
The main benefit is the settlement can be paid over 5 years interest and penalty-free which provides immediate cash flow relief. Of course, you can pay it off sooner if you manage to come into some extra money.
Contact Blue Fox Financial to find out more and see if this option is right for you.
Blue Fox Financial 