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Consumer Proposal Overview
Consumer Proposals: Why Krieger & Company
You’re not alone. Many Canadians are facing the same financial crisis. With mounding debt, it’s time to take control. No matter what brought you into debt, Krieger & Company can help you get out of it. We’re ready to review all of your options via a phone call or visit to one of our offices across Southern Ontario. Call us toll-free today at 1 (844) 508-8088. Starting the process today with Krieger & Company can:
- Get out of debt sooner by paying less than you owe
- Keep all of your assets & extend your time for repayment
- Freeze collection calls and garnishments
How Does A Consumer Proposal Work
A Licensed Insolvency Trustee, like Krieger & Company, conducts a full assessment of your financial situation and helps find the right solution to your financial troubles. When all of your questions are answered, we prepare everything and file your consumer proposal for you. Right away, you stop receiving bills, collection calls and letters from your creditors, garnishments are stopped- and you take a deep breath on the road to being debt free.
Your consumer proposal is like a contract with your creditors. It tells the people you owe money to what you’re committing to pay, when they’re going to receive their money, and other standard terms which we will go over with you in detail. Your Trustee also paints a picture of your financial situation and explains to your creditors why your consumer proposal is a win for everybody involved. Creditors have 45 days to vote on your consumer proposal, and the majority of your creditors in dollar value determines the outcome. If your creditors vote against your proposal, Krieger & Company holds a meeting and opens a dialogue with each of your creditors to address their concerns and reach a solution.
Your role is to keep up your end of the bargain by making the payments you’re committing to pay, as well as to meet with the Trustee for at least two free one-on-one counselling sessions. Once the terms of your proposal are met, you receive a certificate of full performance and are free from all of your debt.
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Frequently asked questions about consumer proposals
What will I offer in a consumer proposal?
What you offer in a consumer proposal is unique to your situation and can be as little as $85 per month. Factors which impact how much you offer include:
- Your monthly budget and your ability to make payments
- Your income
- Your assets
- The total of your debts
Through a free consultation with a licensed insolvency trustee at Krieger & Company, you will receive a complete assessment of your financial situation and we will help you reach the right offer for both you and your creditors.
How does a consumer proposal affect my credit?
Consumer proposals are noted on a credit report for three years after the proposal has been successfully completed. Most credit shows as an “R7” which means that you have made regular payments through an arrangement with your creditors. Any settlement of your debt other than paying it in full as agreed will result in this R7 rating.
The R7 ratings is only one of many factors which make up your credit score, so this doesn’t mean that you can not get credit. At Krieger & Company, we will help you to obtain and rebuild your credit and to minimize the impacts of this R7 rating attached to your older debt.
Do I qualify for a consumer proposal?
Consumer Proposals can be filed by any individual who is carrying between $5,000 and $250,000 of debt (other than a mortgage) that needs help paying it back.
Some of these may describe you?
- I have stable income, but not enough to make a debt in my debts and interest.
- I have assets that I don’t want to let lose.
- I want to stop interest from accumulating so I can pay down by debt.
- I can pay my debts, but just need more time.
- All my money is tied up in my home.
Will I lose my assets in a consumer proposal?
You get to keep all of your assets when filing a consumer proposal, unless of course selling some of your assets is part of your proposal offer. You keep your house, car, investments, jewelry, and retirement savings.
What does a consumer proposal cost?
For once, something in life is free. A licensed insolvency trustee is paid for administering your proposal and providing counselling to you out of your proposal offer. There are no additional fees, expenses or other amounts to pay- just the payment to your creditors that you offer. Typically this payment is made monthly, which further eases your financial situation.
What happens to my tax debt & student loans in a consumer proposal?
Government debt like personal income tax, HST from your small business, or liabilities as a director of a business are generally included in your consumer proposal like any other debt. The sooner you can address these debts, the more flexibility you have in working with your creditors. Until you file a consumer proposal, the government has special powers to garnish wages and attach your debt to property you may own.
A student loan where you have been out of school for more than seven years will be included in your consumer proposal. If you haven’t been out of school for more than seven years, a consumer proposal will pause collection activity on your student loan until you have completed your proposal.