A debt settlement agreement that is legally binding in form, a consumer proposal is aimed at paying your creditors back a percent of what is owed to them, in return for a forgiveness of the entire debt amount. It is filed with a LIT or Licensed Insolvency Trustee. A consumer proposal in North Bay can offer relief from debt while avoiding an announcement of bankruptcy. The Canadian government only sanctions this type of debt settlement program. Know about some of the main benefits of this type of agreement.
Offers asset protection
A major benefit of this type of agreement is that you can get the chance to protect your assets. You can keep every asset in this type of proposal, which includes any home equity, investment or tax refunds.
Reduces monthly payments
You can negotiate in this type of proposal to pay back only a part of the debt that you owe. You can get the chance to see a reduction of debts by up to 70% of the amount that you owed originally. This is among the safest and best options for debt consolidation that you can avail.
Helps avoid bankruptcy
A lot of people require relief from debt, but wish to avoid bankruptcy filing. In case you feel that you would want to pay back whatever is possible for you, a safe alternative is a consumer proposal. You need to discuss the same with a LIT (Licensed Insolvency Trustee). Generally, if you offer more than what can be expected from you in a state of bankruptcy, your consumer proposal would be accepted by creditors.
For more information on debt counselling services, visit the website https://www.reynoldshelp.ca