If you are no longer capable of paying off your debts, you have two options to get out of them. You can choose to file for bankruptcy or you can get a consumer proposal in Kelowna. With a consumer proposal in Kelowna, you are negotiating to lower down the amount you will pay off. It’s usually 25% of the total amount of your debt and then distributed through a 5-year payment plan.

This monthly payment is what makes consumer proposals different from bankruptcy. You are still paying something to the bank but it’s already a more manageable amount.

Your creditors need to vote first and decide if they are going to approve the proposal. However, most of the time, consumer proposals are approved. It’s better than the alternative which is Bankruptcy. With a consumer proposal, the lender can still get something from the original loan.

Borrowers need to pay off the agreed amount each month. If you miss two consecutive payments, the agreement will be nullified and your loan will be reinstated. However, if you find yourself in a better position and you are now capable of paying off the entire consumer proposal, you can do so.

A consumer proposal also protects your assets from creditors. Once approved, they will no longer be able to hound you and force you to use your real estate and other assets for payments.

In order to process your consumer proposal, you need the help of a Licensed Insolvency Trustee first. You can go to Mike Wright & Associates for this.

To know more about Debt Consolidation in Kamloops please visit our website: debtfreebc.ca