Facing debt is never easy, but it is important to be mindful of various options available to help you deal with them, rather than impulsively decide to declare bankruptcy. Filing for a consumer proposal provides an alternative to this measure, whereby you can negotiate with creditors about how much to pay back and over what timeframe. As long as you work with a licensed insolvency trustee who offers insolvency service in Windsor, and present attractive terms that usually offers at least approximately 30% of the amount owed―keeping in mind a considerably larger amount than creditors would receive in a bankruptcy situation―they will often approve your proposal. Here are the basic rules to consider.
1. Ensure you can financially afford what you offer creditors
If you decide that filing a consumer proposal in Windsor is the best debt solution for you while struggling with your finances, it is important to approach the process thoughtfully. While declaring bankruptcy would be the most drastic option for you, it would also be the worst case scenario for your creditors to receive the money you still owe them. So a consumer proposal is essentially a win-win. The most important part is finding a common ground. Consulting with an experienced licensed insolvency trustee who offers insolvency service in Windsor can be incredibly effective at helping you through the complexities. These financial advisors are available to review your individual situation with you and help you decide on the best terms for your consumer proposal in Windsor. Ultimately, once you agree upon ideal terms by helping you weigh your debts with your income to assess what you can still pay out to creditors without mismanaging your funds, they will also file it with the courts on your behalf.
2. Express attractive terms to which creditors will likely agree
Creditors will inevitably prefer that you have decided to file a consumer proposal over a bankruptcy if you have had trouble paying down your debt. In a bankruptcy, they would not owed much of the money back from you (however, you would also suffer the consequences with a negatively impacted credit rating and trouble obtaining loans). Thus, in a consumer proposal in Windsor, although it means you pay less than what you actually owe, for creditors, it should still be enticing and reasonable enough that they―or at least the majority necessary to approve the proposal―will approve the terms upon which you and the licensed insolvency trustee helping with insolvency service in Windsor have agreed. Otherwise, you will either have to amend the terms and try again, which is often successful, or forego the option of filing a consumer proposal in Windsor as your debt solution and perhaps file for bankruptcy instead.
3. Choose an experienced financial advisor who can help
Seeking help during this potentially confusing time is an important step in easing your financial stress. A licensed insolvency trustee who offers insolvency service in Windsor can advise on the many debt solutions available to you and review your unique circumstances to help recommend the best one. In the case of a consumer proposal in Windsor, this financial advisor will guide you from start to finish and represent you when your creditors want to meet or in court. If the companies to whom you owe money are displeased with the initial terms laid out in the proposal, your licensed insolvency trustee offering you insolvency service in Windsor will also help you to redraft them as needed or help you choose a different option.