If I met you over coffee one day and we chatted about financial matters, the conversation could likely swing around to the benefits of something called a Consumer Proposal. I might mention it is a legal, government-legislated solution that can help make most of your credit card debt, Canada Revenue Agency (CRA) tax debt, bank lines of credit, bank overdraft, and even long-standing student loan debt, go away.
Now, imagine us taking that conversation one step further. What if I told you that you would never have to repay up to 80% of that debt? And that all further interest and penalties would stop as soon as your paperwork was signed and filed. Would you believe me?
A Consumer Proposal will reduce your debt
Likely, by this point, you’d be glancing at me sideways with a skeptical look on your face. “What’s the catch?” is the first question I get whenever I speak about the benefits of a Consumer Proposal. And the second question? That’s usually “why have I never heard anyone talk about this before?”
Most of us have heard about bankruptcy protection, but how many of us have ever heard anyone talk about a Consumer Proposal? A Consumer Proposal is one of the best-kept secrets in Canada. It’s also an ideal solution for resolving debt woes by negotiating a settlement offer with the companies you owe money to – aka “the creditors.”
If your debt is less than $250,000, you’ve been a resident of Canada within the past year, or have assets (such as a Registered Retirement Savings Plan (RRSP) in a financial institution in Canada) and feel you can pay back a portion of what you owe, you can file a Consumer Proposal and rebuild your financial health.
How does a Consumer Proposal work?
It’s easy. A Farber Debt Solutions professional will provide you with a free consultation. This no-stress meeting is where you will discuss your financial situation with us and create a settlement offer customized to your needs. It’s likely the offer to the creditors could be as low as 30% of what you currently owe on your credit cards, loans, or tax debt.
For example, if you have $40,000 of debt, your Consumer Proposal could be as low as $12,000, or just $200 per month. All further interest stops the moment it’s filed, and the creditors are notified.
Your creditors are then given 45 days to vote on whether to accept your Proposal or provide a counteroffer. Our Consumer Proposals are accepted by the creditors 98% of the time and usually run for a period of five years. Of course, you can pay it down faster if you’re able to do so, and there are no penalties or extra fees for you to pay if you decide to pay off your Consumer Proposal early.
If you or someone you know have a pile of bills on the kitchen table that seems to be getting higher and higher by the month, have no fear – there is a solution available to help reduce the size of that pile, and the amount owing to the creditors. And all it takes is one simple phone call to Farber Debt Solutions.
Let us help you reduce your debt today.