Consumer Proposals Canada

The option to have loans from a bank seems very attractive and easy but paying those loans back can become an issue sometimes. You can either take more loans to pay the monthly payments of the previous loans or can look for other options. Consumer proposals are designed by different banks to help out the people pay their loans easily. It is a legal process involving Licensed Insolvency Trustee.

Many banks offer consumer proposal services to their clients and each year, a huge number of people sign up for it. It has changed the lives of many people at different scales.

Why you should have a consumer proposal?

It is one of the best options for people who are stressed about the repayment of the loans they took in the past. Here are some benefits these proposals have to offer to anyone who is looking for financial help.

Interest Rates: When you file a consumer proposal all the interest rates from your repayment are waived off making it easy for you to repay.
Less Payments: It opens a door for you to negotiate with the bank to pay less payments and get rid of the loan.
More Years: You can also ask the bank to give you more time to repay the amount borrowed. You can also sign up for equal monthly payments as well.
No Calls: As the process progress, the daily calls from the bank also stop and you get to live your life without harassment on the phone.
Full Security: Filing a consumer proposal gives you a chance to keep all your possessions including car and mortgage as well.
No Additional Costs: You also free yourself from paying any additional costs, fee or charges to anyone.

What is the process of the consumer proposal?

Like there is a proper procedure of everything else in the world, there is a procedure of the consumer proposal as well. Here are the steps a consumer proposal is composed of.

  • You file the consumer proposal with the help of LIT
  • LIT files the consumer proposal with OSB in the next stage
  • The deductions from your salary and your payments end
  • LIT further gives the proposal to creditors with a detail of your financial situation and issues you are facing
  • Creditors are given the time of 45 days to decide whether they want to accept the proposal or reject it