A consumer proposal is an alternative to bankruptcy. But, the consumer
proposals in Windsor are offered to residents of Canada only. In this article,
you will be able to learn a few basic aspects regarding consumer proposals.
A consumer proposal is a deal that the debtor makes with their
creditors. This is a legally binding agreement between the two parties. It is
a good way to avoid going to court and to avoid having your wages garnished. These
plans are usually set up on a three to five year repayment plan and in some
cases, the creditor will only ask you to pay what you owe, or a specific portion
of the amount owed. Under this type of agreement, you won’t have to worry about
creditors changing their mind and asking you for more money.
In order to be eligible to file consumer proposals in Windsor, you need
to be in a financial standing where you could pay at least a specified portion
of your debt and the debt must be more than what you own. A debtor’s unsecured
debt should be less than $250,000.
The first step in filing a consumer proposal is to get help from a
professional administrator who will help you determine how much you can afford
to pay each month and how long you may have to make that payment in order to clear
your debts. The professional will then file this proposal with your creditors.
After that, the creditors would have about 45 days to vote on the proposal. If
more than half of the creditors are willing to accept your offer, then all of
the creditors will be bound by that agreement. Those who did not vote will have
an extra 15 days to file an objection. If they do not file an objection, the
proposal will be accepted by the court and considered binding from then on. If
25% or more of the creditors vote no, there will be a meeting between you, your
creditor and the trustee to reach an acceptable agreement.
Debt counseling services are intended to provide information and
financial guidance to those who are unable to hire a personal financial
advisor. If you are looking for professional Chatham debt counseling services, then
you need to consider a few important tips and suggestions. Here are some
important tips that can help you choose the right debt counseling service for
First of all, it is imperative for you to find a service that is
applicable to your specific financial situation. These types of services are
often provided free of charge and are applicable to a variety of financial
Before selecting a Chatham debt counseling service, it is also important to
evaluate the reputation of the service provider. Try to speak with some of
their previous clients to learn what they have to say about the company you are
choosing. Ask them some important questions that are relevant and applicable to
your financial situation. All of the above-mentioned tips and suggestions will
help you to make an informed decision, so keep them in mind.