If you are having serious debt problems on Vancouver Island, you may need to consider a financial strategy to help you get back on your feet. In some cases, bankruptcy is the best option, but it comes with serious repercussions. However, many Canadians can benefit from consumer proposal. Your debt consultants at 4 Pillars are here to help and here are four reasons to consider this option.
Protection from Creditors
Once you file for consumer proposal wage garnishments stop. Creditors cannot seize things you own. This is an important thing to remember. If you decide on bankruptcy, you may lose some of your assets. Of course, some assets are exempt, but you might have to give up many things. Debt consultants like 4 Pillars can help you look at all the options available so you can make an informed decision.
Bankruptcy and Consumer Proposal Can Affect Others
Do you have a loan with a co-signer? If so, your bankruptcy or consumer proposal puts the responsibility of repayment on the co-signer. For example, suppose a relative co-signs a personal loan of one thousand dollars, and you still owe more than half of the balance. When you claim bankruptcy, the relative must start making the payments. With a consumer proposal part of the debt will be paid and but the relative will be responsible for what is not received via the proposal. Before you make a decision like this, make sure it does not affect people close to you or at least you understand how it will effect them.
Did you know consumer proposal payments are interest-free? You do not have to follow set standards for payment amounts. In fact, you make a proposal to your creditors to pay a certain percentage of what you owe on unsecured debt. Most plans are structured over five years with no restriction on paying it off sooner.
Avoid Bankruptcy stigma
Rightly or wronglt bankruptcy comes with a stigma and follows you forever, in the future there can be a number of times you are asked if you have declared bankruptcy on credit applications and other situations like job and rental applications and you must answer yes, regardless of how long ago it happened. Debt consultants like 4 Pillars can show you the differences and help you make the right financial decision. You may have other options too.
If you have problems with overwhelming debts, come to 4 Pillars Consulting Group. We help you find the best strategy for your financial needs, and you can visit us today at http://4pillarsdebtconsultants.ca/ for more info.