Lethbridge Debt Consultation Expert -Darrell Pauls

Consumer Proposal or Bankruptcy? Which is Right for Me? Contiuned…

Consumer Proposal

A consumer proposal (also administered by a LIT) is a legal process in which a debtor can come to an agreement with their creditors to pay back only a portion of what they owe without interest. The new debt is paid back on different terms in monthly payments over a course of up to 60 months.  You also must give full disclosure of your income as well as assets in a proposal, but monthly income reports are not needed. In a consumer proposal a person’s credit rating is affected, but not as severely as in a bankruptcy. An R7 is placed on a person’s credit bureau which is not as damaging as an R9 such as in bankruptcy. You are also able to begin rebuilding your credit immediately after filing a proposal. A consumer proposal is helpful for people who are in trouble financially, but do not want to claim bankruptcy.

Both of these options are meant for people who do not have much of a choice left and need desperate help with their debt.  If you would like to learn more about bankruptcy or consumer proposals, or if you would like to learn about all of the debt help options that are available to you, give 4 Pillars Lethbridge a call at 403-332-7361. We can set up a free appointment to go over your current situation and help you make the right choice for you.

1274 3 Ave S | (403) 332-7361

www.4pillars.ca