Consumer Proposal

1) What is a consumer proposal?

A consumer proposal is a legally binding agreement between a debtor and his creditors that needs to be filed by a licensed Trustee who is called an “Administrator”.

In most cases, you will pay back much less than the full amount, interest free, and over a maximum period of 60 months.

In order to file a consumer proposal there are two main requirements:

• You must owe less than $250,000 of unsecured debt (excluding the mortgage(s) for the home you live in, the “principal residence”); and
• You have the ability to fund the proposal payment (monthly / lump-sum).

Want to learn more? Contact us for a free initial consultation and we will review all your options to determine if we can help you get started towards a better financial future.

If you owe more than $250,000 of unsecured debt, you may want to consider a Division 1 proposal. To learn more, please call us and we would be pleased to explain how a Division 1 proposal works.

2) Why should I choose a consumer proposal over a bankruptcy?

The advantages are:

• You do not need to declare personal bankruptcy;
• You get to keep your assets;
• You stop all additional interest charges;
• Your collections calls, wage garnishees and legal actions stop;

It is because of these advantages that more and more people in financial difficulty choose a consumer proposal over a personal bankruptcy with Debt Free.

Do you want to learn more? Please contact us and we will review in more detail the benefits of filing a consumer proposal tailored to suit your personal needs.

3) What happens if my creditors do not accept my consumer proposal?

This can happen, but not too often. If it does, often it is just a matter of offering a little more in the monthly payment for the majority of your creditors to accept the consumer proposal.

If a consumer proposal does not work out but you need to deal with your debts, you then have the last option of declaring a personal bankruptcy. Either way, a consumer proposal or a personal bankruptcy, we can help make the process as stress free


1) What is bankruptcy?

Bankruptcy is a legal process in which a person who is unable to pay their debts as they become due is able to get rid of most of the debts.

2) Can I file for bankruptcy?

At Debt Free, we will discuss all the available options that you have including alternatives to bankruptcy.

In order to file for bankruptcy, generally:
• You are unable to pay your bills as they generally become due; and
• You owe at least $1,000.

After discussing all the options that you have, bankruptcy should only be considered as a last resort. If you still want to file for bankruptcy, our team will assist you with the process.

3) What happens after I file?

Once you are bankrupt you have legal protection from your creditors. This protection is called a stay of proceedings and it stops your creditors from commencing or continuing any legal action against you. At this point the calls from your creditors will stop.

4) What does a bankruptcy cost?

The “cost” of a bankruptcy varies depending on many factors. Some of the items considered are:
• Your monthly income;
• Monthly eligible deductible expenses;
• The size of your household; and
• Assets that you own which are not exempt.

The minimum fee is set by the government. The actual costs can vary from one person to another because everyone’s situation is unique. As a result, we offer a free initial consultation and can walk you through the “cost” of a bankruptcy that would be unique to your circumstances.

5) Who files for bankruptcy?

Recent government studies have shown some common “events” that contribute to or cause people to experience financial problems. They include:

• Loss or reduction of income;
• Marital breakdown;
• Sudden / unexpected illness;
• Gambling or other addictions;
• Business failure; and
• Financial mismanagement (misuse of credit).

Are you experiencing one of the symptoms listed above? If so, please call us so that we can help you deal with it in a dignified manner.

6) When is filing a personal bankruptcy the right choice?

At Debt Free, we view filing a personal bankruptcy as a final solution and will walk you through all the other options that you may have. However, we recognize that sometimes it is the right solution to solving your debt problems.

When all other options have failed, please call us to discuss your personal situation to decide whether bankruptcy is the solution for you. You have nothing to lose as your initial consultation is free.

Debt Free

Is a debt advisory and credit counselling firm which provides its clients with legal solutions to personal and business debts. Not only are we experienced and well qualified, but also, we are registered professionals who are going to work directly with you to give you the best solution for your particular financial and credit problem and case.

Becoming a professional credit counselor is not something that can be done overnight. It needs a lot of experience because it is only then we can give you the right solutions and dedicated service necessary for managing your finances and controlling your debt problems.

So if you have any sort of worries connected to –
• Legal matters.
• Wage garnishment.
• Problems with the revenue service or with your taxes.
• Problems with debt and your creditors…

What is the difference between Debt Free and a trustee in bankruptcy?

Remember that a trustee’s job is to look out for the interests of your creditors. However, if you retain us and our services, we are going to be looking out for you and how best way in which we can ward off filing for bankruptcy. This is where we might offer you the suggestion to file for a consumer proposal.