Feeling overwhelmed by a debt that just seems to keep accumulating interest, while you miss payments and fall into arrears? Are you struggling to pay back business loans, student loans, payday loans, your mortgage, or make car payments? A debt consumer proposal in Ontario is a smart way to manage your debt when you can’t keep up with payments. They help you reorganize unsecured debts of under $250,000, not including mortgages (a Division 1 Proposal applies to debts over $250,000 for individuals and businesses, not including mortgages). Debt consumer proposals only apply to loans without any collateral, i.e., not mortgages or car loans. You will have to continue to pay those as usual, but a debt consumer proposal can give you the room to keep up with those payments.
Any Torontonian who is struggling to keep up with debt payments should contact a Licensed Insolvency Trustee without delay. A Licensed Insolvency Trustee in Toronto can help with a debt consumer proposal, whether you’re an individual or a business client. Here are 4 reasons you should consider finding help:
#1 Stop Collection Calls
Debt collectors are companies that are paid to collect debt or even buy debt and attempt to collect it from you, and they will often go to any means to get it, including harassment. Although there are rules about when they can call you and how often, they often break these rules to make you pay to put a stop to the stress. A debt consumer proposal will put a stop to collection calls as long as you live up to your end of the negotiation.
#2 Stop Wage Garnishments
Wage garnishments are when your creditors take legal action to collect money right off your paycheque. In Canada, you may have up to 30 percent of your wages garnished; if you have multiple sources of debt, garnished wages can make it even harder to stay afloat. As with collection calls, filing a debt consumer proposal will also put a stop to wage garnishments.
#3 Reduce Your Debt
When you file a debt consumer proposal through a Licensed Insolvency Trustee like David Sklar & Associates, you renegotiate the debt you with your creditors. In exchange for the certainty that they will get payment, your creditors will often be willing to reduce the money you owe.
#4 Reorganize Your Payment Schedule
A debt consumer proposal typically gives you 5 years or less to repay your renegotiated debt. It’s one of the reasons that creditors are likely to agree to it, as they otherwise may have to chase after you endlessly, with no guarantee of getting their payments. A new schedule gives you time to reorganize your life, pay secured debt (such as your mortgage), and make your debt manageable.
Toronto residents dealing with overwhelming debt can turn to Licensed Insolvency Trustees like David Sklar & Associates when they want to file a debt consumer proposal. Debt consumer proposals can only be filed by Licensed Insolvency Trustees, but they will help you reorganize your debt and take back control of your life. Pay down your debt with the help of a Licensed Insolvency Trustee by filing a consumer proposal, negotiating a fairer way to pay, and taking credit counselling courses that can teach you how to rebuild and avoid a debt crisis in the future.