Hello. I’m Andy Fisher.
I’m a partner with A. Farber and Partners. We are federally licensed Administrators for consumer proposals.
I have with me Saud and Drew. They have a number of questions that we
frequently get asked about a consumer proposal. I hope that by answering these questions,
you get a better understanding about it works.
– Do all of my creditors have to
agree to my consumer proposal? – No. if a simple majority accepts the proposal,
it is legal binding on all of your creditors In other forms of debt settlements
you usually have to deal with each creditor separately. This is time consuming and unless
they all agree you may not be able to fully reduce or eliminate your debts – Why would creditors accept my consumer
proposal that will significantly reduce my debts? – The creditors are going to see that you
don’t have the assets that you can sell to pay your debts in full. They are going to see that you do not have
the cash flow to pay your debts in full. As long as a consumer proposal offers the
creditors more then they would receive in a bankruptcy, and as long it offers
a certain percentage of your debts usually around 30% then generally the creditors
accept your consumer proposal. – Do I have to pay any interest? – No. There is no interest on your payments. – What about fees; how much will this cost? – There are no additional fees or
costs to file a consumer proposal. Your first consultation is free and once the proposal has been
filed and accepted, the costs are included in the one
monthly payment that you make. – Will my creditors be able to garnishee
my wages or seize any of my assets? – No. A consumer proposal will stop any legal
action and it will protect your assets. You can keep your house,
vehicle and all of your assets. – How will my privacy be protected; will my family
and my employer find out about this? – The fact that you have filed a consumer proposal
will not be advertised and will not be published in the newspaper.
The only people who are notified are your creditors, Canada Revenue Agency
and the government agency that regulates the process.
– I’ve heard that in these situations I may have to go to court – No, you do not have to appear in court and in fact once you file your consumer proposal
with A. Farber & Partners, we will deal with your creditors. All you need to do is to make
your monthly proposal payments. I’ve heard advertisements from Debt Counselors
offering the same kind of option why would I not consider them?
– A Consumer Proposal is governed by a federal law. Under this law only a federally licensed
Administrator to a Consumer Proposal Administrator such as A. Farber & Partners (www.afarber.com) can offer this solution to you. So Accountants, Lawyers, Credit Counselors
and Debt Consultants cannot offer you this option – What about the impact on my credit score? – A proposal is on record with the
credit bureau for 3 years after it is completed. But for most people, unless they are going
to win the lottery, it is the fastest way to improve their credit and become debt free. So let’s summarize what we’ve learned:
If you’re in financial difficulty you come to see A. Farber & Partners, we will: review your situation to
determine whether a consumer proposal is the right solution for you. If it is, once you’ve signed the
paperwork you’ll get the relief from your creditors that you are looking for. You will normally pay off about
30% of your total debts. Then you can start the process of
rebuilding your financial future.