Pros and Cons of Filing A Consumer Proposal A consumer proposal is one of the best ways to deal with debts and creditors. That being said, filing a consumer proposal still has its pros and cons. And that’s exactly what we are going to see in this article. So, let’s dig in. Advantages of Consumer Proposal
The first and the biggest advantage of a consumer proposal Toronto scheme is that your assets are well-protected. Another benefit is that you have to make a fixed payment every month for a period of time, unlike bankruptcy where you need to pay in percentage to how much you earn that month. The negotiations help in consumer proposal Toronto procedure allows you to pay only a fraction of the total debt if agreed by the creditors. So, it is possible for to you pay small monthly installments for your repayment schedule. The creditor protection act stops the harassment of creditors through constant calls or home visits. You can avoid filing for bankruptcy if a consumer proposal is an option available for you.
Disadvantages of Consumer Proposal It takes longer than bankruptcy to complete the debts that also affects your credit report for a longer time. But lower installments definitely help with your financial situation. If you do not have any assets that can be seized or significant income rises in the near future, bankruptcy can be your best choice for covering the debts. However, it is better to get an opinion of professional debt solutions personal before choosing your option. Consumer proposal affects your credit report for a few years, which can be a negative factor if you are planning on getting a loan.