Consumer Proposals in Ontario
One monthly payment, no interest, no creditor calls
Let our professional team of licensed insolvency trustees find the perfect solution to your financial challenges.
Consumer Proposals: Why choose Krieger & Company
You’re not alone. Many Canadians are facing the same financial crisis. With mounding debt, it’s time to take control . No matter what brought you into debt, Krieger & Company can help you get out of it. We’re ready to review all of your options via a phone call or visit to one of our offices across Southern Ontario. Call us toll free today: 1.844.508.8088.
- Get out of debt sooner by paying less than you owe
- Keep all of your assets & extend your time for repayment
- Freeze collection calls and garnishments
How It Works
A Licensed Insolvency Trustee, like Krieger & Company, conducts a full assessment of your financial situation and helps find the right solution to your financial troubles. When all of your questions are answered, we prepare all of the paperwork for you and the consumer proposal is filed. Right away, the bills stop coming in, the collection calls and letters stop, the garnishments stop- and you take a deep breath being on the road to being debt free.
Your Trustee paints a picture of your financial situation and why your proposal is a win for everybody involved. Creditors have 45 days to vote on your proposal, and the majority in dollar value determines the outcome. If your creditors vote against the proposal, Krieger & Company holds a meeting and opens a dialogue with each of your creditors to address their concerns and reach a solution.
Your role is to keep up your end of the bargain by making the payments you’re committing to pay, as well as to meet with the Trustee for at least two free one-on-one counselling sessions. Once done, you receive a certificate of full performance and are free from your debt.
Frequently Asked Questions About Consumer Proposals
What Will I Offer?
What you offer in a consumer proposal is unique to your situation and can be as little as $100 per month. Factors which impact how much you will offer include:
• Your monthly budget and ability to make payments
• Your income
• Your assets
• Total of your debts
Through a free consultation with a Licensed Insolvency Trustee at Krieger & Company, we will do a complete assessment of your financial situation and help you reach the right offer for you and your creditors.
How Does It Affect My Credit?
Consumer proposals are noted on a credit report for three years after the proposal has been successfully completed. Most credit shows as an “R7” which means made regular payments through a special arrangement to settle your debts. Any settlement of your debt other than paying it as agreed will result in this R7 rating.
This doesn’t mean that you can not get credit in the future, however indicates to lenders to be cautious. At Krieger & Company, we will work with you to rebuild your credit and minimize the impacts of this R7 rating on your older debt.
Do I Qualify for a Consumer Proposal
Consumer Proposals can be filed by any individual who is carrying between $5,000 and $250,000 of unsecured debt that needs help paying it back.
Some of these may describe you?
• I have stable income, but not enough to pay my debts and interest.
• I have assets that I don’t want to let lose.
• I want to stop interest from accumulating.
• I can pay my debts, but just need more time.
• All my money is tied up in my home.
Will I Lose My Assets in a Consumer Proposal?
You get to keep all of your assets when filing a consumer proposal, unless of course selling some of your assets is part of your proposal offering. That includes your house, car, investments and retirement savings- all yours to keep.
What Does A Consumer Proposal Cost?
For once, something in life is free. A Licensed Insolvency Trustee is paid our of the monies you pay into the proposal. There are no additional fees, expenses or other amounts to pay- just the payment to your creditors that you offer.
What About My Tax Debt & Student Loans?
Government debt like personal income tax, HST from your small business, or liabilities as a director of a business are generally included in your consumer proposal like any other debt. The sooner you can address these debts, the more flexibility you have in working with your creditors.
A student loan where you have been out of school for more than seven years will be included in your consumer proposal. If you haven’t been out of school for more than seven (7) years, a consumer proposal will pause collection activity on your student loan until you have completed your proposal.