Are You Eligible for a Consumer Proposal?

 

A consumer proposal in Kamloops is an alternative to filing for bankruptcy. It leaves a lesser impact on your credit record. You will still pay something after the creditors decide how much you should pay but it’s not as big as your original debt.

However, not everyone is eligible to get a Consumer Proposal in Kamloops. Lending institutions usually follow these when deciding if someone is eligible for a consumer proposal:

1. You are a person and not a business.

Your business debts won’t be eligible for a consumer proposal. Only the debts that you have incurred as an individual will be included.

2. You need to provide proof that you can’t pay off your debts.

Show proof of your insolvency. This means you can’t pay off those debts any longer. Rather than lose all the money, most banks will agree to a consumer proposal if they see that the debtors don’t have the capacity to pay.

3. You have a source of income.

You still have some debts to pay. The lender needs to see that you have the ability to make the monthly consumer proposal payments.

You also need to have a debt of no more than $250,000. That means bigger debts like mortgage loans might not be eligible for a consumer proposal.

Mike Wright & Associates Inc will assist you in obtaining a consumer proposal. The sooner you can get it, the sooner you can reduce your financial burdens. Rather than opt for bankruptcy, consider this option first.

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