Friday, May 1, 2015
Dealing with Debt Relief in Canada: A Quick Look at Consumer Proposals
Being knee-deep in debt payments can be very bothersome, especially if you are a senior. This is the case with June and Todd, a couple in their mid-60s who are trying their best to get out of debt so that they can finally retire fully. The couple owe more than $45,000, and most of their debt carries interest rates of higher than 11 per cent. Due to this, their retirement income is not enough for their debts and for their living expenses. The silver lining here is that June and Todd are good candidates for debt relief in Canada called a consumer proposal. This is ideal for people whose debts do not exceed $250,000. It is a formal process that is legally binding where the bankruptcy trustee will work with a person to develop a “proposal”. This is basically a proposition to pay creditors a percentage of what is due them or increase the amount of time to pay off the debts. In some cases, both can be done. A consumer proposal’s term cannot go beyond five years.