Although you are reading this on the bankruptcy-cambridge.ca web site, I don’t want to talk about bankruptcy in Cambridge.
When I meet with people in my Cambridge office, I like to mention all bankruptcy alternatives. I’ll mention debt consolidation loans and credit counselling, and I always like to mention Cambridge’s best kept secret method of debt relief: consumer proposals.
A consumer proposal is a deal that I negotiate on your behalf with your creditors. He was injured at work, and while he was off work recuperating he used his credit cards to survive. He’s back at work now and has a job, and can make a payment each month, but he can’t afford to pay what the full amount the creditors are asking; the high interest is just too much.
He knows he owes the money and he doesn’t want to go bankrupt, but he doesn’t make enough to qualify for a debt consolidation loan. The solution may be a consumer proposal.
Based on his income, it is likely that his creditors would accept a proposal of $300 per month for the next three years. As the proposal administrator my firm, Hoyes Michalos & Associates Inc., takes the $300 and distributes it to the creditors, with the larger creditors getting a bigger share of the proceeds.
Since I file more consumer proposals in Cambridge each year than any other trustee, I can predict that there is a very good chance that his creditors will accept the proposal. He will have one monthly payment to make, and he no longer has to worry about trying to juggle many credit card payments each month.
A consumer proposal is not the solution for everyone, but for many people it is the best solution, so I encourage you to e-mail me or call me in Cambridge at (519) 622-3773 so that I can review your situation and help you decide which option is best for you.
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