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- Stop collection calls
- Take control of your debt
Victoria is, without a doubt, one of the most beautiful places in the country to live in. However, this often comes with a price, as the cost of living in Victoria is high and growing rapidly.
As a result, many people in Victoria and the surrounding area find themselves struggling with debt. Some people are able to help themselves out of debt, but others might require a bit of help. If debt relief options like credit counselling, debt consolidation, or debt settlement haven’t helped, you may want to consider a consumer proposal.
A consumer proposal is a legal process in Victoria which you will enlist the help of a Licensed Insolvency Trustee (LIT) in order to pay back part of what you owe to your creditors (learn more about LITs here). The repayment amount will depend on factors like your income and the types of assets that you own.
Consumer proposals offer several benefits such as not putting your assets at risk and having less of a negative effect on your credit when compared to personal bankruptcy. A consumer proposal is also a legally binding agreement in Victoria that will protect you from debt collection. So basically, it is a legal and binding agreement between you and your creditors to pay back a part of what you owe and they will forgive the rest.
However, there are some qualifications that you must meet before filing a consumer proposal. These are things like:
Now that you know about what consumer proposals are and how they can potentially help you out, what is the consumer proposal process like in Victoria?
Of course, your LIT will be able to tell you the process a little more in-depth and answer any questions that you might have about any part of the process.
Worried about improving your credit after a consumer proposal? Click here.
However, if you are dealing with severe debt problems, a consumer proposal isn’t the only option at your disposal in Victoria. A bankruptcy is a popular and well-known option as well. In order to help you choose which is right for you, we’ll look at the similarities and differences between the two.
As for which you should choose, that will depend on your unique situation in Victoria. Whichever method you are leaning toward, you should be sure to speak with a professional as they will be able to give you the right advice and guidance for your unique situation.
Think a consumer proposal is the correct solution to your debt problems? If so, Loans Canada is confident that we can help you find the best option possible in Victoria.
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