5 Things You Probably Know About Getting Consumer Proposal

Author : Debt Free | Published On : 01 Apr 2021

If you don’t want to file for bankruptcy because of its effects on your credit rating, one alternative that you can go for is a consumer proposal in Kamloops. However, many people have misconceptions about consumer proposal in Kamloops. It’s important to talk to a Licensed Insolvency Trustee or a LIT, who can help explain the process to you.

Here are a few things you probably don’t know about a consumer proposal in Kamloops:

  1. It’s not going to forgive all your debts

Unlike bankruptcy, consumer proposal in Kamloops will not forgive all your debts. However, it will reduce your debts to a small fraction of what they used to be, so it’s easier to pay off. You can pay it off in a period of 5 years, depending on your agreement with the lender. Your Licensed Insolvency Trustee will negotiate on how much of your debt you can still pay off.

  1. There is no interest in the remaining debt

Once you have agreed on the amount of debt you should still pay, you can start paying for it monthly. But unlike a regular debt, this debt doesn’t come with monthly interest. In the consumer proposal in Kamloops interest rates are not imposed.

You don’t have to worry about added fees as well. The fees for your Licensed Insolvency Trustee will be included in the consumer proposal. Unless your LIT can negotiate the terms, you won’t start paying for it.

  1. It’s one way to protect your hard-earned assets

One of the benefits of a consumer proposal is that it protects your assets. If you have secured debts such as a housing loan or a car mortgage, your properties for these secured debts will not be touched.

  1. It’s negotiable and can be tailored to fit your needs

One of the reasons why a consumer proposal is a good option is because it allows you to negotiate to an amount that you can handle. Once that has been negotiated, you have the option of spreading your payments, which is then more manageable. With this, you can go back to your life and sort out your finances better.

A lot of people get stressed out over their debts and this can be detrimental to one’s mental health. With a consumer proposal, debt payments seem more manageable.

  1. There are counseling sessions that you need to attend

These counseling sessions are mandatory. They should be good for you as well because they can help teach you the proper ways of managing your money. You can turn a new leaf with the help of the things you can learn from these counseling sessions.

If you think a consumer proposal is right for you, go to a reputable Licensed Insolvency Trustee such as Mike Wright & Associates Inc.

Shane Taylor is the author of this article. To know more about Debt Consolidation Companies in Kelowna please visit our website: debtfreebc.ca