Debt Relief in Saint John – Insights

Many consumers face overwhelming amounts of debt, which can quickly become unmanageable. The Bankruptcy and Insolvency Act provides two different types of debt relief. Consumer proposals and bankruptcies are two options that can help consumers get back on their feet. The key to choosing the right option is to weigh all of your options carefully. For example, you should consider your total debt, surplus income, assets, and costs. Get the facts about Debt Relief in Saint John-Powell Associates Ltd. – Licensed Insolvency Trustee you can try this out.

A typical consumer proposal will require you to make payments to creditors through a trustee for close to five years. A consumer proposal can be paid off sooner, though. However, it is vital that you meet all of your creditors’ expectations. If you fail to meet these expectations, the bankruptcy trustee may reject your consumer proposal. In this case, you should contact an LIT to help you adjust your proposal. This will allow you to explore other options and avoid filing bankruptcy.
Both bankruptcy and consumer proposals have disadvantages. Bankruptcy requires you to surrender some assets. The trustee will sell your non-exempt assets, and then use the cash to pay off your creditors. In contrast, a consumer proposal is a private option that will not affect your credit history, so there are no negative long-term consequences. But you should also be aware of how bankruptcy will affect your credit report. If you have more than five million dollars in debt, consider filing bankruptcy to prevent its negative impact.
A consumer proposal can reduce your debt by up to 80 percent or more. A consumer proposal is a legally binding contract that freezes interest and halts collection action. In contrast to bankruptcy, a consumer proposal will prevent creditors from repossessing your property or seizing your assets to pay for your unsecured debt. It can be the best option for you if your debt is overwhelming and you do not have a large amount of disposable income.
The two most common types of bankruptcy have their pros and cons. Bankruptcy is faster and less expensive than a consumer proposal, but its adverse effects are more damaging to your credit. Depending on your circumstances, a consumer proposal can last up to 60 months, while a bankruptcy stays on your credit report for three more years. Then, you can focus on living debt-free again. But which is better? Find out for sure and choose the best option for you.
The bankruptcy trustee will evaluate your intake sheet and determine whether it is the right option for you. After reviewing your finances, he will prepare the necessary filing documents and help you choose the right one. Once he has reviewed your paperwork, he or she will electronically file it with the OSB, where your Certificate of Bankruptcy will be issued. This step is not easy to complete, but it is crucial for your financial well-being.
While both are important options, a consumer proposal will allow you to pay back part of your debt and extend the time you have to pay it. Bankruptcy will wipe out most of your debts, and may be the best option for your situation. The process of filing for bankruptcy is more difficult, and will take more time than a consumer proposal. But the benefits of a consumer proposal are undeniable.