What Debt is Included in a Consumer Proposal

 

A consumer proposal in Kamloops is an alternative solution to bankruptcy. With the help of a licensed insolvency trustee such as Mike Wright & Associates Inc, you can file for a Consumer Proposal in Kamloops. Once accepted, your outstanding debt will be reduced to a more manageable amount that is usually payable within 5 years.

But not all debts are included in a consumer proposal. You can only include unsecured debts or debts that are not secured by collateral or another asset such as a real estate property or a car. This can include credit card debts, line of credit debts, payday loans, personal loans, and some types of student loans. If you have income tax debts, that can be included in the consumer proposal as well.

The creditor has a right to sequester the collateral for secured debt. So if you don’t keep on paying your secured debts such as your car or mortgage, your creditor will take possession of them.

The best thing to do is to talk to a licensed insolvency trustee such as Mike Wright & Associates. A consumer proposal can be a good option for you if you are no longer capable of paying all your debts. Compared to bankruptcy, it’s not as damaging to your credit record. You can recover faster if you file for a consumer proposal rather than bankruptcy.

But to make sure that this is truly the best choice for you, you should talk to a licensed insolvency trustee. You need to make sure that you can still pay off the amount you agree on with the creditor.

For more details about Bankruptcy in Kelowna please visit our website: debtfreebc.ca

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