Consumer Proposal Mississauga – A Complete Guide
What is a consumer proposal, and is it my best option?
If you’re looking to consolidate your debts, one option available is to file a Consumer Proposal in Mississauga. This is a legal settlement under the Bankruptcy and Insolvency Act between yourself and your unsecured creditors to pay back a portion of the debt you owe.
A Consumer Proposal can only be filed and managed by a Licensed Insolvency Trustee . For the proposal to be legally binding, the creditors who are owed the majority of your debt must agree to the arrangement.
What is the cost of filing a consumer proposal?
You’ll pay an initial filing fee of $104.03, and if it’s accepted by your creditors, you’ll pay the settlement over up to 60 months. The amount of debt that you repay is based on your income and what assets you own.
Payments are made to your Trustee which deposits them into a trust account. The Trustee’s fees get paid by your creditors out of the trust account according to a tariff. This tariff is $1,500 plus 20% of the amount the Trustee distributes to your creditors every year.
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The Pros and Cons of Filing a A Consumer Proposal
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Avoid Getting Ripped Off When You File a Consumer Proposal
A growing number of for-profit debt consulting companies and their sales people have started marketing consumer proposals as an easy way to get out of debt.
But the problem is that only a Licensed Insolvency Trustee can file and manage a consumer proposal. Debt consultants have charged thousands of dollars in fees to vulnerable, unsuspecting consumers only to refer them to a Trustee which already gets paid by their creditors from proposal payments.
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Debtors served by LITs who had ongoing relationships with debt consultants usually ended up paying thousands of dollars more for the administration of their insolvency than debtors who were not sourced through a debt consultant.
Typically, debt consultants required a consumer debtor to sign a fee agreement for consulting services prior to being introduced to a “selected LIT.”
Debtors typically understood the role of the LIT as being limited to meeting with the debtor to “file” the proposal developed by the debt consultant.
You should avoid dealing with Trustees which participate in these types of business relationships with debt consultants.
Please visit our Consumer Proposal FAQs page where we answer the most common questions about consumer proposals.
Bankruptcy Mississauga – A Complete Guide
Filing for personal bankruptcy is something to consider if you are unable to solve your problems with a consumer proposal. For example, your income may be too low and/or or your debts may be too high to file consumer proposal that would be acceptable to your creditors.
What is bankruptcy?
Filing for bankruptcy is a legal process, regulated by the Bankruptcy and Insolvency Act, by which you’ll be relieved of all of your debts except for:
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- Secured debts such as a car loan or a mortgage
- Student loans if you’ve been out of school for less than 7 years at the time of filing bankruptcy
- Child support and spousal support payments that are in arrears
- Fines such as traffic tickets
- Debts acquired due to fraud or misrepresentation, such as welfare fraud
If you’re filing bankruptcy for the first time and your income is below a certain income threshold, your bankruptcy will last for 9 months after which you’ll receive an automatic discharge from bankruptcy.
What is the cost of filing for bankruptcy?
If your income is above the previously mentioned income threshold, your bankruptcy will last for 21 months after you’ll be required to repay some money back to your creditors out of your income – this is called surplus income.
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What happens during bankruptcy?
During your bankruptcy, you’ll be required to attend 2 financial counselling sessions with the Trustee and you’ll need to keep a record of your monthly income and expenses so that your Trustee can calculate your surplus income payments, if any.
What happens to my income tax refund?
Your Trustee shall also be required to prepare and file your tax return for the year you filed bankruptcy. Any tax refunds are property of your bankruptcy estate and are sent to your Trustee by the Canada Revenue Agency.
Please visit our Personal Bankruptcy FAQs page where we answer the most common questions about filing bankruptcy.
Looking for the best Mississauga Licensed Insolvency Trustee?
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Our Licensed Insolvency Trustee office in Mississauga is located at 1370 Hurontario Street, just 2 blocks south of the QEW near Port Credit.
When you first contact us, we’ll book you an appointment with our Licensed Insolvency Trustee, Victor Fong. We’ll also inform you what information you should bring to your meeting with Victor at our Mississauga office.
If you want to work with a Trustee who will give you confidence and peace of mind, look no further.
Contact Fong and Partners Inc., one of the 3 Best Rated Trustees in the Greater Toronto Area.
Reviews of Our Services
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Want to work with us? Our promise to you…
- You will be in constant contact with a real Licensed Insolvency Trustee.
- Your calls will always be returned.
- Your emails will never be ignored.
- We will work with you to craft an affordable payment plan that makes sense for your budget.
Contact Our Mississauga office
Fong and Partners Inc
1370 Hurontario Street
Mississauga, Ontario L5G 3H4
T: 905.271.0478
help@startingovertoronto.com
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