Who to talk to about a Consumer Proposal

There are many companies in Canada that claim they can help you reduce your debt.  Whether they are profit-driven or not-for-profit organizations they each charge service fees to help you negotiate a repayment plan or settlement agreement with your creditors.   Some have contractual agreements with creditors spelling out the repayment arrangements that they will accept so there really are no negotiations taking place on your behalf.   You either fit into their model or they can’t help you.

The level of experience, training, and education with debt settlement and credit counselling companies can also be an issue.  Some have previous credit or collection experience while others have no experience other than the in-house training programs these organizations provide.  Many debt settlement and credit counselling companies do not have the capability or incentive to adequately explain the options of personal bankruptcy or consumer proposal.  Sometimes they refer to these aforementioned options as government debt relief programs which can be misleading. These are important options to understand before you decide what will work best for your situation.

A Licensed Insolvency Trustee (LIT) is regulated by the Federal Government to administer personal bankruptcy and consumer proposal filings.  Most Licensed Insolvency Trustees are also members of the Canadian Association of Insolvency and Restructuring Professionals and are subject to ethical standards and codes of conduct.  A Licensed Insolvency Trustee must complete a very comprehensive multi-year educational and experience program before obtaining a license to practice. Check out our article on what is a Licensed Insolvency Trustee to learn more about Trustees.

Trustees are professionals who are licensed and regulated by the federal government under the Bankruptcy and Insolvency Act (“BIA“). Most Trustees are also members of the Canadian Association of Insolvency and Restructuring Professionals (“CAIRP“), a national organization. Trustees must follow professional ethics and code of conduct rules and guidelines set out in the BIA and issued by CAIRP.

  • Your Trustee’s job is to administer your bankruptcy or consumer proposal following the Bankruptcy and Insolvency Act.

  • The Trustee is accountable to all parties involved in your bankruptcy or consumer proposal; you, your creditor and the Court.

  • The Trustee is required to administer your bankruptcy or consumer proposal in a fair and unbiased manner and to respect you and your creditors’ rights.

While Trustees are all governed by the Bankruptcy and Insolvency Act, not all are members of CAIRP. Like choosing a lawyer or accountant, you should be comfortable with your Trustee and how he/she interacts with you, explains your options and the process as it affects you. If you are not comfortable, you should contact another Trustee.

It’s important to understand that Trustees are the only professionals who can provide bankruptcy or consumer proposal services in Canada.

There are debt settlement companies and credit counselling companies that offer other debt solutions. None of these companies are regulated, and they do not have the power or authority of the Bankruptcy and Insolvency Act.

If you are considering using a debt settlement or credit counselling company, you should also contact a Trustee to understand how personal bankruptcy and consumer proposal work for you.

Most Trustees will provide you with a FREE consultation to review your situation and outline the options.

If you are having difficulty paying your debts, and you are asking yourself ‘is a consumer proposal worth it?‘ you should contact a Trustee in Bankruptcy (Licensed Insolvency Trustee) to review your options.

Powell Associates Ltd. is a Licensed Insolvency Trustee. We are experienced, hands-on insolvency practitioners who understand the personal impacts of major financial stress;

  • You won’t be stuck in an assembly line process.

  • You will expect and receive prompt responses and resolution of issues from our supportive and experienced team.

  • We will review your debt solution options, including filing a consumer proposal or personal bankruptcy. We will also help you understand which of your debts will be released in either option.

  • We help Canadians with overwhelming debt get fresh financial starts.

Once you file a consumer proposal or personal bankruptcy, we deal directly with your creditors on your behalf. Your unsecured creditors are required to stop contacting you or continuing legal proceedings against you. Contact us for a free consultation.

We offer free consultations to review your financial situation and practical debt resolution options. Contact us to discuss your situation over the phone, a video chat, or in-person in Saint John, Moncton, Fredericton, Charlottetown, Dartmouth, or Miramichi.

Consumer Proposals

A consumer proposal is a debt relief solution legislated by the federal government. A consumer proposal allows you to consolidate your debt or settle your debt for less than you owe and with no interest charges.

Here are the top 10 benefits of a consumer proposal.

  1. write-off part of your debts

  2. stop collection calls

  3. stop a wage garnishment

  4. unfreeze your bank account

  5. legally binding on all unsecured creditors

  6. deals with CRA and payday loan companies

  7. you keep your assets including your tax refund

  8. reduce your monthly payment to something that is affordable

  9. no interest on monthly payments

  10. avoid bankruptcy

We work with you to craft an offer you can afford.

The cost of a consumer proposal is known upfront. What you pay is exactly, and only, what payment you negotiate with your creditors at the beginning of the consumer proposal process. Once you complete your payments and the terms of your proposal, your debts are eliminated. See the pros and cons of consumer proposal vs other debt consolidation options.

A consumer proposal can only be filed with a Licensed Insolvency Trustee like Powell Associates Ltd. Learn how to file a consumer proposal or contact one of our offices today (Saint JohnMonctonFrederictonCharlottetownDartmouth, or Miramichi) to talk about how a consumer proposal can help you get out of debt and avoid bankruptcy.

Contact Our Team about a consumer proposal

Debt Consolidation vs Consumer Proposal

If you have significant credit card debt, tax debts or other unsecured debts, you may be wondering if a debt consolidation loan, home equity loan or second mortgage are a good option to consolidate your debts.

An unsecured consolidation loan can be difficult to get if your credit score already reflects poor or too much credit. Even if you have equity in your home, it can be difficult to qualify for a home equity loan or second mortgage and the costs and interest rate can be significant.

Our debt professionals can help you review your debt restructuring options and compare the pros and cons of a new loan or second mortgage with making a formal, debt settlement offer to your creditors through a consumer proposal.

Book a free consultation to review your options

Filing Personal Bankruptcy

Personal bankruptcy should be a last resort, but sometimes it is the right solution to help you get out of debt. Our licensed insolvency trustee can help you decide if filing bankruptcy is the best option to eliminate your debt.

No matter how serious the debt problem is, remember there are debt relief options. At Powell Associates Ltd. you always talk to an expert. Consultations are free and we offer flexible appointment times.

Call our office 506-638-9220 or email us today.

A bankruptcy and consumer proposal can only be filed through a Licensed Insolvency Trustee. We are licensed by the federal government to help you deal with debt.

Ask us about your bankruptcy options

Debt problems don’t go away on their own. If you cannot afford to repay your debts on your own, as Licensed Insolvency Trustees we help you explore all your options and choose the solution that is best for you.

Break Free From Credit Card Debt

If you are only making minimum payments on your credit cards it will take you years to pay off your balances, if at all. We can help you consolidate your payments or make a settlement offer that can lower your credit card balances. Your credit cards are rolled into one reduced monthly payment.

This is not a new loan, it’s a government-approved interest-free debt settlement plan payable over up to five years.

Stop the Payday Loan Cycle

Payday loans cause financial stress because the interest accumulates faster than you can pay it off. Over time this eats away at your paycheque. Once you fall behind, payday lenders use aggressive collection tactics like calling your employer and garnishing your wages.

We can include payday loans in your program and help you break the payday loan cycle.

Get Tax Debt Relief

Only a Licensed Insolvency Trustee has the options that can help you reduce your tax debt liability. Tax debts are included in your debt settlement program with other debts and the penalties and interest will stop. If CRA has frozen your bank account or garnished your wages, we can reverse those actions.

Student Loan Debt Forgiveness

Looking for help resolving student loan debt? If you have been out of school for 7 years, your government student loan debt can be discharged through a bankruptcy or consumer proposal.

Eliminate High-Interest Installment Loans

You may have tried to consolidate or pay bills by taking out a high-cost financing loan. While these types of consolidation loans can help you deal with the immediate demand for repayment, they come with an interest rate of 39%, 49% and even 59%.  Installment loans meant for those already in debt or with poor credit just postpone, rather than solve the problem.

Unsecured loans, whether owed to a bank, credit union or financing company can be eliminated with payments determined based on what you can afford.

Why Talk with a Licensed Insolvency Trustee?

If like many of our clients, you are struggling with debt, it is time to break the debt cycle by working with a Licensed Insolvency Trustee near you. We are licensed by the Government of Canada to help you with your debts.

We can help you break free from debt.

If you would like help becoming debt free, call our team today:

Saint John (506-638-9220)

Moncton (506-870-8277)

Fredericton (506-474-2423)

Charlottetown (902-620-4990)

Dartmouth (902-403-3602)

Miramichi (506-502-7913)

Book a free consultation today