Consumer Proposal in Edmonton – A Safe Way to Avoid Bankruptcy
Bankruptcy and debt problems can happen to almost anyone. These problems can arise from a variety of different causes, such as sudden job loss or natural disaster. Most people believe that the only solution for this problem is bankruptcy, but a viable alternative does exist. More and more people today are looking to consumer proposal to get rid of their bankruptcy and debt problems. Depending on your exact situation, consumer proposal might be the best solution to fix your financial problems.
In Edmonton, consumer proposal is legally compulsory. It is essentially a settlement made between you and your creditors after a negotiation. In order to start completely fresh with your finances, it is completely necessary to understand the process of consumer proposal as well as its associated risks. Any Edmonton resident who wishes to undergo consumer proposal must have around $1000-$2500, not counting their mortgage. In addition, they must have a tight yet reasonable budget that makes it very difficult to pay off the debt.
The first step in the consumer proposal process is filing the proposal to a trustee. This allows you to have the proposal voted by your creditors. Once your creditors have voted, you will find out whether or not your proposal has been accepted. It is at this point when you can make payment to your trustee according to the terms of the consumer proposal. If your proposal is rejected, the trustee will often help you find a different solution. If you are unable to make the payments, your proposal will become null and void. With consumer proposal, you also have the ability to attend at least two sittings of credit counseling. Once the payments are complete, you will be awarded a certification, at which point you will not remain liable for any credit or debt.
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