The Office of the Superintendent of Bankruptcy (OSB) has published its statics on Personal Bankruptcies and Consumer Proposals for 2010.
2009 was the big boom for personal insolvencies (bankruptcies and consumer proposal filings).
The noticeable increase however is the number of people filing a Consumer Proposals increased further in 2010. In the Guelph regions region 689 Consumer Proposals were filed compared to 650 in 2009. An increase of 6.0%
The graph above shows how the number of Consumer Proposals filed in the region has steadily raised over the last four years.
What this means is that more and more people in Guelph are finding ways to deal with the debt problems they have without filing for a Personal Bankruptcy.
A Consumer Proposal is a simple payment plan where you pay a portion of what you owe (typically 30-40%). This process is negotiated with your creditors (people you owe money to) via your Trustee. You have 5 years to pay off a consumer proposal and all interest stops.
Advantages of Consumer Proposals
- Avoid bankruptcy
- You negotiate to repay only a portion of your total debts (typically 30-40%)
- Assets do not vest with your trustee (i.e. RESP’s, Home, etc)
- Phone calls stop and all legal actions is prohibited (i.e. wage garnishment)
- Legally less involved than a bankruptcy
If you believe a Consumer Proposal is looking like a good solution for you, then give me a call today on 1-(866) 747-0660 or e-mail me with your details and we’ll be happy to discuss your situation to see if a Consumer Proposal is the right solution for you.
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