Advantages:
- Avoid bankruptcy while resolving financial difficulties.
- It immediately stops legal action from unsecured creditors, including wage garnishments, bank account seizures and unencumbered asset seizures.
- It instantly protects you from receiving collection calls from your unsecured creditors.
- Unsecured creditors are now required to communicate with the Proposal Administrator instead of you.
- It stops the accumulation of interest on your unsecured debt.
- One affordable monthly payment may be made to your Proposal Administrator instead of multiple payments to individual unsecured creditors.
- Each monthly payment made to the Proposal Administrator pays your unsecured creditors and pays the Administrator`s fees.
- No additional costs, payments or interest charges apply beyond your single monthly payment to the Proposal Administrator.
- Flexible payment options are available. Plus you have the option to prepay at any time to help reduce the length of the consumer proposal.
- It allows a director of an incorporated business to maintain his or her position.
- It prohibits an employer from terminating, laying off, suspending or disciplining an employee on the basis of filing a consumer proposal.
- Disclosure of your financial situation is not required if you enter into a business transaction.
- Financial difficulties may be resolved within 90 days by providing a one-time lump sum payment to your Proposal Administrator.
Disadvantages:
- Stable monthly income is required to ensure you can pay the Proposal Administrator consistently.
- Your ability to make payments to the Proposal Administrator must be demonstrated through income verification and your monthly household budget.
- Acceptance of the consumer proposal is subject to a majority (50% or more) vote by your unsecured creditors.
- If multiple payment defaults occur, the consumer proposal is annulled – brought to an end – which reinstates the rights of the unsecured creditors to pursue collection or legal action. When a consumer proposal is annulled, personal bankruptcy may be your only option.
Thank you so very much for your help with my bankruptcy. It was and will always be well appreciated from the bottom of my heart.
Wesley