Tag Archives: debt settlement

Consumer-Proposal-How-Much-do-I-need-to-Offer

Consumer Proposals: How Much Do I Need To Offer?

“How much?”.  It’s one of the most important questions that people want answered when considering a consumer proposal. Unfortunately, there is no “one size fits all” answer.  While a number of factors can affect the amount that you need to offer your creditors through a consumer proposal, the most important factor is: What would they receive if you declared bankruptcy?  Federal law requires that every proposal is better for the creditors then a bankruptcy. That’s why Trustees always consider ...

Consumer Proposals and the CRA

Consumer Proposals and the CRA

Consumer Proposals and the CRA You may be able to settle your tax debt with the Canada Revenue Agency (“CRA”) by filing a Consumer Proposal; However Consumer Proposals and the CRA make for some unique requirements when combined.  For your consumer proposal to be accepted by the CRA you’ll need address the following issues. File All Outstanding Returns The first thing that you’ll need to do is file any outstanding returns.  This includes personal income tax as well as HST ...

Why File Consumer Proposals

Why File Consumer Proposals

Why File Consumer Proposals? People choose to file consumer proposals for different reasons.  The most common are: To Stop Garnishments Consumer proposals stop garnishments immediately.  The moment that your Trustee files your Consumer Proposal with the Office of the Superintendent of Bankruptcy a stay of proceedings comes into effect.  This means that your creditors are stayed; in other words their collection efforts are legally paused.  They can only contact your Trustee and can only vote in favour or against your ...

Bankruptcy vs. Consumer Proposal

Bankruptcy vs. Consumer Proposal

It’s a common question received by Trustees: “Bankruptcy vs. Consumer Proposal – What’s the difference?”  While we’ve highlighted the most significant differences in detail below, the short answer is that a proposal is always preferred but not always feasible. Consumer proposals must always offer your creditors more than they would receive if you declared bankruptcy.  For this reason, they are more expensive than bankruptcy.  If you can afford to make a consumer proposal and choose to declare bankruptcy, the ...

Am I eligible to file a consumer proposal?

Yes, you qualify for a consumer proposal  if you meet the following criteria: 1) You owe at least $1,000 to your creditors.  While this is the minimum required by law, Welker and Company doesn’t typically recommend consumer proposals to people with less than $10,000 in debt.  Also, the proposal process is more in-depth when you owe more than $250,000 (excluding mortgages or secured lines of credit). 2) The settlement that you propose to your creditors is better than what ...

Know Your Options

A Trustee in Bankruptcy is a licensed professional specializing in debt just like a medical doctor is a licensed professional specializing in your health. After a doctor performs an examination they’re able to provide you with your options and recommend a course of action to solve your health problems. A Trustee in Bankruptcy does the same thing during your free initial consultation. He takes the time to understand the specifics of your financial situation while focusing on what you ...

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