Consumer Proposals in Sarnia

by Joel Sandwith on July 23, 2010

Bankruptcy is not the only option for residents of Sarnia to deal with difficult debt situations. While it would be wonderful if debt could easily be paid in full, we recognize that this is often impossible. What if you can’t repay all of your debt, but you could pay some of it?

This is where a consumer proposal may be very helpful. In a consumer proposal you are basically offering to repay your creditors a portion of the money that you owe them, over time. You avoid bankruptcy, and your creditors get something rather than nothing.

Let me give you a typical example that I see here in Sarnia: let’s say you have $40,000 in credit card debt. Your minimum payments every month might be $1200 on that. You pay them, but the balance seems to go UP rather than DOWN.

In this case, it’s likely that the interest is eating up most of your payments, plus since you still need to live you are forced to use the cards again, raising the balance.

In a consumer proposal, it may be possible to lower your payments to $400 per month, or perhaps even less, AND have you out of debt in four years. You win by reducing the cost of your debt, and your creditors win because you didn’t file bankruptcy.

Of course sometimes bankruptcy is the right solution. At Hoyes, Michalos, our goal is to help you to learn about the options that fit your circumstance the best. Call us today at 310-PLAN, or e-mail me today for a free consultation and evaluation today.

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