At EmpireOne Credit, our certified credit counsellors will review your financial situation and work with you to resolve your credit issues.
A consumer proposal addresses unsecured debt that can take on five aspects.
- Credit card balances
- Personal lines of credit
- Bank loans and bank overdrafts
- Personal loans advanced by finance companies, payday lenders and friends/relatives
- Income tax debt owed to Canada Revenue Agency
A joint proposal may be filed by two or more individuals if the consumer proposal can reasonably be dealt with as one because of the financial relationship of the debtors involved (i.e. a married couple, common law partner or unrelated people with a large amount of shared debt). In practice, a joint proposal is often filed when there is 70% shared debt and when the individuals have both co-signed for the same loan or credit card. You may wish to consult with EmpireOne on the subject of joint liabilities.
A consumer proposal has the force of law behind it.
If at least half of the creditors by dollar amount vote to accept the offer, all remaining unsecured creditors are bound by this offer and cannot take any action against the debtor.
There are 3, 4 or 5 year proposal plans available for you. You have up to 5 years to make a maximum of 60 monthly payments. You can choose to accelerate your monthly payments and thus eliminate your debt faster without any penalty. The sooner you complete your proposal, the faster you will regain a favorable credit rating.
Proposals are contracts with your creditors that end upon completion, eliminating the listed debts once and for all. Proposals are remarkably straightforward arrangements.
Secured lenders are neutral to proposals. There is no risk of repossession provided that, installments are current. Also, your employer cannot terminate, lay off or suspend by reason, when filing a consumer proposal.
You keep all your assets such as your house and/or vehicle while the consumer proposal is being performed.
If you own a financed or leased vehicle, you can keep the vehicle. The proposal does not address this type of debt because it is a secured debt, (there exists collateral security that covers this debt). Another major category of assets that is not subject to the proposal is your principal residence. A house or condominium is burdened by a mortgage or a total equity line of credit and there may be other liens against it, such as property tax arrears and property management fees that are once again beyond the scope of the proposal.
You can carry on your business activities if you are self-employed while you are undergoing a proposal.
If you decide to quit your business venture and you want to end all business activity at the time of filing the proposal, you can include all reasonable debt you incurred in your sole proprietorship in the proposal.
Your credit rating will be restored three years after the fulfillment of a proposal. The reference to the proposal will be expunged from your personal credit history after 3 years have passed since your obtaining a Certificate of Full Performance.
Is Declaring Bankruptcy the only solution to Your Debt Issues?
Dealing with debt might prove troublesome for majority of people undergoing debt crisis. Without proper consumer debt counselling, they are unaware of countless effective debt solutions like debt consolidation. Most would just simply declare bankruptcy to deal with debt settlement issue, but fail to acknowledge that bankruptcy brings serious consequences. Allow our expert counsellors at EmpireOne to guide you through the process with professional advice and suggestions.
EmpireOne Credit is dedicated to helping clients in the Greater Toronto Area who are struggling with debt and financial hardship. EmpireOne Credit’s passion is derived from the knowledge that the situation isn’t always as bad as it seems. Through credit counselling, EmpireOne guides their clients toward the best options possible, whether that is a debt consolidation, a consumer proposal or declaring bankruptcy.
Regardless of the path taken, EmpireOne Credit is proud to help clients every step of the way.
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A consumer proposal is a formal, legally binding process between you and your creditors to offer a payment percentage of what you owe based on income and assets.
You won't be able to apply for an unsecured credit card while you're making payments in your proposal but you will be able to apply for a secured credit card or a prepaid one.
3 years after the last day of payment on the fulfillment of the Consumer Proposal. As stated by Equifax, “A consumer proposal will be removed from your Equifax credit report 3 years after you've paid off all the debts according to the proposal, or 6 years from the date it was filed, whichever comes first.”
If you miss a proposal payment you can always make it up within the term but if 3 payments are missed within the term then you become annulled. If you're annulled, you have a month from the first day of annulment to revive your proposal by making up the payments missed all at once.
- All unsecured credit cards,
- CRA debt,
- lines of credit,
- student loans,
- cash stores loans,
- department store cards,
- phone bills,
- utility bills,
- shortfall owing on assets that have been repossessed (example; vehicle, house)