For many Canadians, submitting a consumer proposal with the help of a Licensed Insolvency Trustee (LIT) is a preferable alternative to filing for personal bankruptcy. While either are important steps, if a consumer proposal is an option available to you, it is a simpler process than bankruptcy.
Although a consumer proposal will ease the pressure that occurs when debt collectors are knocking at your door, it won’t make your financial problems magically go away. Once your consumer proposal has been accepted, you’ll have to start making some essential changes in your life. At A.C. Waring & Associates Inc. in Edmonton, we want all our customers to come out of the consumer proposal process in a better financial position. Here are just a few things to consider when planning ahead.
What changes will I have to make once my consumer proposal is accepted?
Assuming your proposal has been signed in good faith, your proposal, once accepted will enable you to keep many of your assets. At the same time, you’ll also be responsible for adhering to the terms of your proposal, whether that means paying a lump sum or a series of payments to your LIT, which will then be used to settle your debt. Once all your payments have been made, you’ll be able to focus on achieving your personal finance goals, including:
- Attending credit counseling sessions. As part of many consumer proposals, debtors may be required to attend credit counselling These are a great opportunity to learn more information and strategies about personal finances, so you’ll be in a better position to rebuild your financial standing.
- Developing better spending strategies. If you’ve gotten into debt to the point that you need to file a consumer proposal, you probably need to develop better saving strategies. This may mean budgeting your money more effectively, or learning how to invest the money you do have. You don’t want to end up in the same position again, so you should definitely rethink how you organize your finances.
- Rebuilding your credit. Once you’ve settled your debts, you’ll have a fresh start and will be able to rebuild your credit. If you demonstrate that you’ve changed your habits and learned more about money management, you’ll be able to rebuild trust with creditors.
Where can I go if I still need help with my finances?
Finding the right balance when it comes to personal finances is difficult and we all need help from time to time. The professionals at A.C. Waring & Associates Inc. are here to help you with your consumer proposal or any other type of debt help you require. If you’re concerned about your debt, call us at 780-424-9944 or 1-800-463-3328 to find out how we can help you handle your debt crisis.
A.C. Waring & Associates Inc.
The Debt Solutions People®
Senior Bankruptcy Advisor
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