Bankruptcy Kitchener Blog

Bankruptcy is an option for many people, but we strongly believe that all residents of Kitchener, Ontario should consider a consumer proposal before considering personal bankruptcy.A consumer proposal is an alternative to bankruptcy. The process is relatively simple.

A trustee acts as your proposal administrator. They contact all of your creditors (the people you owe money to) and propose a settlement based on your ability to pay.

For example, let’s assume you owe $50,000 on a bank loan and three credit cards, and even though you have a good job, you can’t afford to make all of the required payments each month. Let’s also assume that you own a house in Kitchener, and you are worried that if you declare personal bankruptcy you may lose your house.

A consumer proposal may be the perfect solution. As an example, you may be able to make a proposal to your creditors where you pay $500 per month for four years, or $24,000 in total. That money is then distributed to your creditors, and in exchange they agree to write off your remaining debt.

Of course this is just an example. In your case your payments may be more or less each month, depending on your income and other assets.

The biggest advantage of a consumer proposal in Kitchener is that you now only have one payment to make each month to deal with all of your debts, and you don’t have to worry about your wages being garnisheed, or worry about losing your house in a bankruptcy.

A consumer proposal is not the correct option for everyone, but for many people it’s the perfect solution to your debt problems.

For more information, contact the trustee firm that has filed more consumer proposals in the last five years in Kitchener than any other firm: Hoyes Michalos & Associates can be reached in Kitchener at 519-747-0660, or e-mail a question, and let’s get started.