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A consumer proposal is probably the least publicized and well know bankruptcy alternative.
Like a debt management plan, a consumer proposal is a deal you make with your creditors to pay them over a period of time. Unlike a debt management plan you do not necessarily pay your creditors in full.
Due to the relatively stable employment rate in Kitchener in many industries, consumer proposals in Kitchener are one of the best ways to deal with your debts while avoiding bankruptcy.
In a typical consumer proposal your trustee, called the consumer proposal administrator, works out a payment plan that is affordable for you, and likely to be accepted by your creditors. The creditors than vote on the plan, and if more than half of the creditors, based on dollar value, accept the plan, the consumer proposals is accepted.
In a typical consumer proposal filed in Kitchener the debtor may owe around $50,000 to unsecured creditors like banks and credit cards. Based on their income they might make payments of $300 to $600 per month for up to five years. The payments will vary depending on the person’s income.
Once the consumer proposal is accepted, the payments never change, even if your income increases.
Consumer proposals in Kitchener work best if you have a stable income, or expect your income to increase in the future, but your income is not high enough to pay your creditors in full.
Hoyes, Michalos & Associates Inc. files more consumer proposals in Kitchener than any other trustee. They are licensed by the federal government, and have years of experience dealing with all of the major creditors.
A consumer proposal is a plan to deal with your debts, so if you need a plan, call Hoyes Michalos & Associates Inc. in Kitchener at 310-PLAN or (519) 747-0660, or email Hoyes Michalos to ask a question or to set up an appointment to discuss whether or not filing a consumer proposal is the correct bankruptcy alternative for you and your family.
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