If you've found yourself in financial trouble -- where you owe a lot of money to creditors -- a consumer proposal may be the best course of action. It's a great alternative to filing for bankruptcy and typically comes with the following benefits.
Reduce Debt Owed
When your debt has reached a certain point it may seem impossible to pay back. There is light at the end of the tunnel when you file a consumer proposal, however. If accepted, it will significantly decrease the amount of money you have to pay back to creditors.
How much debt you still have to pay is dependent on the amount of money you make and how much debt you owe. Not having to pay back as much can give you some breathing room financially. You can effectively make payments and get your finances back on track without feeling as much pressure from creditors.
Looks Better Than Bankruptcy
There are so many negative connotations associated with bankruptcy. Future lenders see this and may forgo giving you a loan. You thus are stuck with a negative financial stigma, even if you've made efforts to proactively improve your financial standing.
Fortunately, consumer proposals are not usually viewed in the same light as bankruptcy. You can thus restructure the debt you owe and not have to worry about being judged as much in the future. You'll also feel confident going forward since bankruptcy doesn't loom over your shoulders constantly.
Protect Your Assets
When people file for bankruptcy they could potentially lose valuable assets. If you care about a lot of your assets, such as your home or car, this can be frightening. That's why it may be ideal to forgo bankruptcy in favor of a consumer proposal.
Under this debt restructuring, all of your assets will be completely protected. These assets typically include equity in your home, investments, and tax refunds. These assets are solely yours and you can do whatever you want with them. This is important for assets that you've poured hours of labor into, such as a home.
Dealing with debt can be stressful. If you're finding it hard to reverse what was done, consider using consumer proposal secured debt services. It's often the best-case scenario when dealing with a crippling amount of debt. Just make sure you weigh this proposal's pros and cons carefully, so that you can make an informed decision regarding your financial future.