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Consumer Proposal Pros and Cons – Is it worth it?

12 October 2023

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Consumer Proposal Pros and Cons

Key Points

Almost half of all Canadians find themselves with less than $200 to spare by the end of the month, leaving them vulnerable to financial challenges. In today’s uncertain economic climate, unexpected expenses can easily push you into debt, leaving you uncertain about your next steps.

You might be burdened by debt, but you could also have valuable assets you wish to protect. Concerns about the long-term repercussions of bankruptcy may be on your mind. Fortunately, there’s an alternative solution – a Consumer Proposal, which can offer you a fresh financial start.

If you’re grappling with financial stress and struggling with payments, seeking guidance from a Licensed Insolvency Trustee at Harris & Partners is a wise step. They can help you explore options and propose a debt repayment plan to your creditors. Harris & Partners provides expert assistance and complimentary debt counseling to assist you in regaining financial control.

Now, let’s assess the advantages and disadvantages of filing a Consumer Proposal to help you determine if it’s the right solution for your unique circumstances.

Is a consumer proposal worth it?

Consumer proposals can provide significant benefits in managing overwhelming debt, making them worth considering. Here are key reasons to explore a consumer proposal:

Consider these factors to decide whether a consumer proposal is the right solution for your debt challenges. Consulting a Licensed Insolvency Trustee is a vital step in making an informed decision.

Pros of a Consumer Proposal

Filing a Consumer Proposal offers numerous advantages, making it a compelling solution for many. Here’s a concise summary of its pros to help you assess its suitability for your situation:

Throughout the Consumer Proposal process, you’ll benefit from the knowledge and support of a Licensed Insolvency Trustee (LIT). The LIT communicates with your creditors on your behalf and guides you through every step.

Cons of a Consumer Proposal

Before deciding if a Consumer Proposal is the right debt solution for you, it’s crucial to consider both its advantages and disadvantages. While it offers benefits, such as stopping creditor actions and protecting assets, there are drawbacks to take into account.

Here’s a concise summary of the cons associated with a Consumer Proposal to help you make an informed decision:

Additional factors to consider:

If the disadvantages of a Consumer Proposal outweigh the benefits for your situation, consult with a Licensed Insolvency Trustee (LIT) to explore alternative debt relief solutions better suited to your needs.

Take control of your finances with Harris & Partners

Consulting a Licensed Insolvency Trustee (LIT) is essential when considering a consumer proposal. LITs, like Harris & Partners, offer a free consultation to assess your eligibility and financial situation. It’s important to note that the law mandates LITs to administer consumer proposals, so avoid paying unqualified debt counsellors for similar services.

Dealing with debt can be complex, and determining the appropriateness of a consumer proposal for your unique circumstances can be challenging. Therefore, seeking guidance from a licensed insolvency trustee is strongly recommended.

For a discussion regarding consumer proposals in Canada with one of our licensed insolvency trustees, please contact Harris & Partners Inc. at 1-800-268-8093 today.