Consumer Proposal Scarborough

Scarborough Consumer Proposal

Consumer proposals are formal agreements between creditors and debtors, mediated by Licensed Insolvency Trustees, in which debtors repay the debt owed in a span of three to five years – and creditors forgive any remaining debt after the repayment period passes. With consumer proposals in Scarborough, people can eliminate debt and stop any wage garnishments, creditor harassment and legal actions. 

If you are struggling with debt in Scarborough and need assistance from a professional, Risman Zysman Inc. can guide you through how to file for a consumer proposal and initiate your debt-free journey. Our debt consultants will assess your financial situation and provide you with the best debt relief alternative for you.

Call (416) 222-4600 to book your free consultation with Risman Zysman Inc. today.

Advantages of Filing for a Consumer Proposal in Scarborough

Filing for a consumer proposal in Scarborough offers people in debt a great way of eliminating debt without declaring bankruptcy. However, consumer proposals are not available to all – the process requires debtors to have a stable income and good credit score, apart from damaging one’s credit history for a few years.

Still, the advantages of consumer proposals surpass the cons. Consumer proposals in Scarborough offer:

•  No upfront fees 
• Unfreezing of bank accounts
• No creditor harassment
• A stop to wage garnishments
• Only one payment every month
• Debtors keep all assets
• Debt reducement of 80%

Ask us about a consumer proposal

Consumer proposals in Scarborough are a legal debt relief solution to anyone looking to eliminate a big portion of their debt without suffering harassment from creditors or wage garnishments. In order to qualify for a consumer proposal, debtors must have a good credit score, a stable income to afford one low monthly payment and a debt amount that exceeds their assets. They also must be a Canadian resident or a property owner.https://rismanzysman.ca/consumer-proposals/bankruptcy-vs-consumer-proposal/

If you would like to know if a consumer proposal is a good option for you, schedule a free consultation with our Licensed Insolvency Trustees today by calling (416) 222-4600. You can find out either bankruptcy or consumer proposal is better for you.

Consumer Proposal Process in Scarborough

If you decide that filing for a consumer proposal in Scarborough is the best debt relief option for you, the process is very straightforward. 

Step 1: Talk to a LIT at Risman Zysman

Our Licensed Insolvency Trustees at Risman Zysman Inc. are here for you. The first step you must take to file a consumer proposal is to contact a professional Licensed Insolvency Trustee at (416) 222-4600 for a free consultation.

Step 2: Documents

Once you contact a LIT and they go over your financial situation, you will be required to fill and sign Consumer Proposal documents. This paperwork will be filed by your trustee and submitted to the court. However, you can check what paperwork and documents you require.

Step 3: Creditor Approval

Your creditors receive your consumer proposal and have 45 days to decide and approve it. Once their approval is received, you must agree to any terms and conditions before making your monthly payments.

If the creditors or the court do not approve of your consumer proposal in Scarborough, your Licensed Insolvency Trustee will improve the conditions of the agreement in order to submit it again.

Step 4: Commitment to Duties and Certificate

Once creditors approve your consumer proposal, you must commit to your duties – paying your monthly payments and attending counselling sessions over a period of three to five years. After this time has passed, your consumer proposal process is officially terminated, and you receive a Certificate of Completion.

And lastly, cost of consumer of proposal. Check out how much does a consumer proposal cost.

Want to File for a Consumer Proposal in Scarborough? Talk to Risman Zysman Today

If you are struggling with debt, rest assured that our Licensed Insolvency Trustees at Risman Zysman Inc. will do their best to guide you through your consumer proposal process in Scarborough. 

With Risman Zysman, you can move forward with your debt-free journey in a confidential and efficient manner. Book your free consultation with us today at (416) 222-4600, and one of our professional LITs will be happy to assist you.

Repayment Plan

When you file a consumer proposal, your trustee will work with you to create a repayment plan. This repayment plan will outline how much money you will pay back each month and when you will be done repaying your debt. Your trustee may also suggest alternative payment plans if they feel that the proposed repayment plan is not feasible for you. Ultimately, it is up to the court to approve your repayment plan. If the court approves your repayment plan, you will be required to pay your trustee each month. Once you have made all of the required payments, your debt will be discharged, and you will be free from your creditors.

Paperwork and Documentation

When you file for a consumer proposal, much paperwork and documentation are required. If you cannot provide some of the documents, your trustee can help you gather the necessary information. Remember, it is important to provide as much information as possible to help your trustee make an informed decision about your proposal.

The paperwork and documentation for a consumer proposal usually include the following:

• A cover letter or proposal
• The consumer proposal form
• The Statement of Affairs
• A financial statement
• Proof of income (pay stubs, bank statements, T1 General)
• Proof of expenses (mortgage or rent payments, utility bills, credit card statements)
• List of creditors and balances owed to each creditor
• Any other relevant documents specified by the trustee

Stay of Proceedings

If you have filed a consumer proposal, the court may order a stay of proceedings. This means that your creditors cannot take any action to collect their debts from you while the proposal is in effect. The stay of proceedings also applies to any legal actions that might be taken against you.

Voting and Approval

When it comes to voting on a consumer proposal, there are three possible outcomes: acceptance, rejection, or continuation. In most cases, the vote will result in either approval or rejection after 45 days of creditors’ review. However, if there is a tie vote between accept and reject, the proposal will continue. This means that the creditors will have an additional month to consider the proposal and make a decision. If there is still a tie vote at the end of that month, then the proposal will be automatically rejected.

Payments and Duties

When you make a consumer proposal, there are certain payments and duties that you must follow. These include making monthly payments to your trustee, attending credit counseling sessions, and abiding by the terms of your proposal. If you do not make your monthly payments or follow the other requirements of your proposal, your trustee can terminate it, and you will likely have to declare bankruptcy.

Debt Elimination

You will receive a Certificate of Full Performance once the proposal payments are complete. This means that your debts have been eliminated, and you can have a fresh start in your financial status.

If you’re feeling overwhelmed by debt and don’t see a way out, it might be time to consider a consumer proposal. This is a formal process where you work with a Licensed Insolvency Trustee to come up with a plan to pay back your debts over time. You can still keep your assets and there’s no need for bankruptcy. Contact us today for more information or to schedule a free consultation. We can help you get started on the path to financial freedom.