How Do Consumer Proposals Impact Families?

Families have a wide selection of expenses that draw on their financial
means. Families with children have expenses that are usually larger and more varied than predicted.

Sadly families do feel the financial pinch, and this triggers arguments and emotions. Being Short of necessary cash while raising a family is terrifying, and causes a lot of tension. A Consumer Proposal presents relief for debtors. You shouldn’t be humiliated about this, and you should get the advice of a Licensed Insolvency Trustee.

The downside is that all your credit cards and unsecured loans will be included in a Consumer Proposal that will be closed. If the bank is among the creditors, you will need to open a new account at a different bank.

For anyone who has a mortgaged home, the amount of equity that exists in the property will influence how the Proposal is structured. If there is a whole lot of equity, it could be necessary to sell the home. A Licensed Insolvency Trustee may quickly advise.

Consumer Proposal will adversely impact your credit rating for many years. On the other hand, the credit bureau will remove information regarding your Proposal from your credit report 3 years after you complete your Proposal.

Selected families who realize they desire financial assistance have already cut out all luxuries to feel easiness once the Proposal is in place.

You’ve read this far, take a look at reaching out to a Trustee. It is Free and Confidential.


J.P. Graci & Associates Ltd.

150 Colborne St. Suite 2,
Brantford, ON N3T 2G6
Brantford: 519-753-7361
Hamilton: 905-525-7077

Which Debts Will Be Covered By Consumer Proposal?

Should you file a consumer proposal in Ontario, make sure you meet with a Licensed Insolvency Trustee because they are licensed by the government to act as administrators of consumer proposals and bankruptcies. A Licensed Insolvency Trustee is able to effectively determine your circumstances and will help you with your the very best option.

Debts That Are Included

Should you meet with a Licensed Insolvency Trustee, you need to let them know what all your debts are. Include all of your unsecured debts in a consumer proposal. Unfortunately, you can not pick and choose which debts to include, or leave out. The creditor will determine how their debt is handled. There are two sorts of creditors. There are unsecured creditors and secured creditors. Each debt is handled differently in a consumer proposal.

Unsecured Creditors

  • Credit cards
  • Payday loans
  • Certain bank loans
  • Loans from individuals
  • CRA debts (income tax, HST)
  • Student loans

There are a few unsecured debts that are a bit more complicated to navigate around in a consumer proposal.

Secured Creditors
A secured creditor that holds a charge or security over an asset, such as a home loan.

  • Bank
  • Asset-based lender

There are two options with secured creditors:

You can keep the secured asset but you are required to keep up with current payments
You can surrender the asset back to the secured creditor.

If you happen to be going through a challenging time keeping up with your debt repayments and are considering of filing a consumer proposal, contact an administrator today. They can tell you if you qualify or not. A Licensed Insolvency Trustee is your best option for getting out of debt.

Graci & Associates Ltd.
150 Colborne St. Suite 2,
Brantford, ON N3T 2G6
Brantford: 519-753-7361
Hamilton: 905-525-7077