A Consumer Proposal is a debt management arrangement you make with your creditors to settle the debt amount and/or timing of the payment of your debts. The proposal often allows you to negotiate to repay less than the full amount owed. A Consumer Proposal is also legally binding, which means your creditors will stop harassing you, garnishing your wages, and will stop all other actions against you.
Pegasus Credit Counsellors have experience working alongside Trustee’s in Bankruptcy and can help you find a solution that best fits your financial situation. Our process is very simple! First, we have an initial no-obligation consultation in which we review your financial situation. After reviewing your scenario, we come up with a custom-tailored solution that best fits your needs. Our counsellor will then guide you on a step by step process to implement this tailored solution. If you decide to proceed further, then the Counsellor will set up a second consultation in which we will start your proposal process.
Our tailored Consumer Proposal will automatically stop the following:
- Legal Actions by Creditors
- Collection Proceedings (calls, letters etc)
- Lawsuits
- Asset Repossession
- Wage Garnishments
You keep all your assets, such as your house, car & investments and your income is never monitored.
Debts you can eliminate in a Consumer Proposal:
- Unsecured credit cards & lines of credit
- Unsecured personal loans
- Income tax debts – if not classified as an overpayment
- Student loans – if more than 7 years old
- Business debts – personally guaranteed only
- Utility bills – should the services not be required anymore
- Pay day loans
- Medical bills
Debts you can NOT eliminate in a Consumer Proposal:
- Fines imposed by the Courts
- Certain government overpayment’s
- Debts that arose as a result of fraud or theft
- Court awarded damages for sexual assault or intentionally inflicting bodily harm
- Child & Spousal support
- Student loans – less than 7 years old
You are eligible for a consumer proposal if:
- You are natural person who is insolvent, including a bankrupt &
- cannot meet payment obligations as they become due &
- owes less than $ 250,000.00 (not including a mortgage on their principal residence)
If debts are more than $250,000.00 including car loans than the proposal is categorized as a DIV 1 of part III of the Act or you may opt to file for Bankruptcy.
You have the maximum of 5 years to pay these monthly payments or you can choose to pay your debt faster by making bigger payments or even pay off the whole proposal without any penalties.
