Stay Out of Bankruptcy
Filing for bankruptcy puts a bad mark on your credit report and makes it more difficult to get favourable loans in the future. At Exelby & Partners Ltd., we don’t want that to happen to you. Fortunately there is an alternative to bankruptcy: consumer proposals. The Trustees and Administrators at Exelby & Partners Ltd. have been helping Edmonton and Alberta residents avoid bankruptcy, through the use of consumer proposals, for over 20 years.
What is a Consumer Proposal?
A Consumer Proposal is a debt repayment agreement negotiated with your creditors through a Licensed Insolvency Trustee. A legally binding settlement is put in place to protect you from debt collectors (they will not be allowed to seize assets or funds), and arrange for the partial repayment of your total debt. Therefore, when you file a consumer proposal, you are agreeing to pay a portion of what you owe. Your creditors agree to forgive, and eliminate, the remaining debt owed. You will have immediate relief from your creditors and there will be a smaller effect on your credit than filing for bankruptcy.
How to File for a Consumer Proposal
Once you book a consultation with Exelby & Partners Ltd. we will follow these steps:
We will consider your options. We will look at your finances and the debts that you owe to your creditors. Then we will be able to tell you if a consumer proposal is right for you. There may a better option and our trained Administrators will make sure you choose the option that is best for your situation.
We will prepare the proposal according to your income and debts. We will also send the proposal to all of your creditors.
You will have to wait for your creditors to accept the proposal. Most creditors will accept a reasonable proposal because if you file for bankruptcy, they may not get anything from you.
Once the proposal is accepted you no longer have to pay interest on the debt. You will then pay back the debts according to the terms of the proposal. We will be with you during this step as well to help you manage your payments.
If you get a rejection for your consumer proposal, we will help you to find other alternatives. You will be in charge of paying your debts as usual, so debt consolidation, bankruptcy, or other options might be the next step.