Discover how a consumer proposal can help manage your debts. Keep more of your stuff while getting debt-free.
Based on the available data and records, a consumer proposal (a form of debt restructuring) is usually the best option for individuals who have debts. Debt restructuring is much more favorable compared to filing for bankruptcy because it allows the debtor to keep more of their private property. Once a debtor submits their application for debt restructuring, they will be protected by law, and all debt collection and legal proceedings will be stopped.
In theory, a consumer proposal can cover all of a person’s unsecured debts such as credit card debts, unsecured loans, gambling debts, and private loans. Debt consulting companies may also include these debts in the debt restructuring plan, providing high debt relief. The amount of debt restructuring relief generally ranges from 60% to 80% of the total amount owed, which means that for every dollar owed, the debtor will only need to pay back 60 to 80 cents. However, the specific amount will depend on the individual’s personal income and assets.
Once the debt restructuring plan is approved, the debtor will have up to five years to pay off the reduced debt through regular repayments. However, they can also choose to pay off the debt early and end the repayment cycle sooner. It’s important to note that debt restructuring is a legal process, and it’s best to seek professional advice from a debt consultant before making any decisions.
In summary, debt restructuring is a good option for people who are struggling with debt and want to avoid bankruptcy. It can provide relief from unsecured debts and allow debtors to keep more of their property. It’s important to seek professional advice and carefully consider the terms of the debt restructuring plan before moving forward.
Unlock the potential of debt relief with Mortgage Details. Contact us today to get referred to trusted experts who specialize in consumer proposals and debt restructuring plans. Take control of your financial future now.