What Are The Advantages Of A Consumer Proposal?
Do you wonder how a consumer proposal is different from bankruptcy in helping you achieve debt relief? Many ask about the differences of consumer proposals vs. bankruptcy, and the differences are important.
At Hudson & Company, we believe in helping our Calgary customers make well-informed choices regarding solutions to their financial hardships. The following are the main advantages of a consumer proposal:
Control of Assets
Your assets (e.g., your car and home) can be included in the terms of the proposal, allowing you to keep them in your possession and pay for them. If these assets belong to a creditor, we will discuss the best course of action during your free consultation with us.
The payment terms can be altered based on your distinct financial situation. Bankruptcy, on the other hand, involves specific guidelines, and your monthly amount will be established by the Superintendent of Bankruptcy.
Flexible Payment Options
Monthly payments are arranged based on your ability to pay, and the payment period can be extended for up to 5 years. For example, if you are a single individual with an income of $3,000 per month, your monthly payment would be only $200 under a consumer proposal but would have to be $470 in a bankruptcy.
Creditors Bound By Proposal
When the required majority of your credits accept the proposal, the remaining credits who do not accept the proposal are still legally bound by it.
Payments Income Independent
Your payments remain the same even if your income increases. Under a bankruptcy, however, your payments will increase as your income rises.