The Debt Solutions People®

Division II Proposals (Consumer) in Edmonton

Call Us Today

How Our Professionals Can Help

Debt is something we may all face. However, without budgeting for income vs. expenses, your debts can rise to a point where you might feel like you have lost all control over your finances. 

As a result, you may find yourself unable to keep up with your monthly payments, slip into minimum payments (red flag!), and continue adding to your debt load. This affects your credit score. And once you start to fail minimum payments, your credit score is affected again.  

Usually, debtors have already tried all sources and means to pay their way out of debt. This may include additional jobs, selling off equipment or goods, returning purchases, garage or internet sales, borrowing from friends and relatives, moving, and getting money management help.

The team at A.C. Waring & Associates is here to help you find the financial stability you need.  You may need someone to talk over your financial matters and take that advice. Or you may need to initiate official formal proceedings in the form of either a Division II Consumer Proposal or a Division I Bankruptcy proceeding, depending on your financial situation.

What Is a Consumer Proposal?

A Division II Consumer Proposal is an alternative to bankruptcy and can only be administered by a Licensed Insolvency Trustee. To qualify for a Consumer Proposal, you will need to have accumulated consumer debt of less than $250,000, except for the mortgage on your principal residence. 

You will also need a predictable source of income, even though it may presently be insufficient to service your consumer debts as they stand.

After consultation with a trustee, it will be determined whether or not a Consumer Proposal is appropriate for your situation. If it is, then a formal proposal will be drafted and executed by you and submitted to your creditors by the trustee. The proposal must detail what percentage of the amount owed will be paid to creditors and the length of time the payments will be made (up to 5 years). 

If the majority of unsecured creditors, based on dollar value, agree to the proposal, the trustee will proceed to oversee the matter. If they do not agree, you will remain in the situation you are presently in. Subsequently, other options can be discussed.

When Should You Consider a Consumer Proposal?

The best time to talk to a trustee about a Consumer Proposal is when you find yourself burdened by debt that you cannot service or if your creditors are preparing to take legal action in order to garnish your wages or even seize your assets.

What to Expect & Next Steps

What to Expect During the Consumer Proposal Submission and Approval Process

The first thing you will need to do is recognize that you are not able to keep up with your current financial obligations. Next, you will need to speak to a Licensed Insolvency Trustee to go over which options are best for you, given your financial and personal circumstances. Trustee consultations are free, and referrals are not required.

Your trustee will advise you of whether or not your financial situation permits a Consumer Proposal. When developing a Consumer Proposal to be presented to your creditors for approval or rejection, your trustee will help draft a reasonable and appropriate financial plan, including the total amount to be paid and the time period it will span.

Once prepared, your trustee will then send the proposal to your creditors, who will have up to 45 days to respond by voting letter.

If accepted, you may move on to implementing the proposal requirements and your creditors will no longer be pursuing you through formal or informal collection action.

During the agreed-upon proposal timeframe, you will pay a percentage of the total amount owed.  However, if you miss 3 payments, your proposal will be annulled, and your creditors will have the full right to pursue what they are owed.

Talk to a Licensed Insolvency Trustee at A.C. Waring & Associates to acquire financial counselling, orderly debt resolution, budgeting, debt solutions, and credit score management.

Where To Find Us

Find us in the First Edmonton Place building on the corner of Jasper Avenue and 107th Street, behind the Corona LRT Station. Street meter parking is available along Jasper Avenue as well as 106th and 107th Streets, and paid surface parking is off of 106th Street, and underground parking for First Edmonton Place is off of 107th Street.

A.C. Waring &
Associates Inc.

  • First Edmonton Place
    410-10655 Jasper Ave NW
  • Edmonton, AB T5J 3S9

Contact
Information

Our Testimonials

Blog

How To Deal With Overwhelming Credit Card Debt

Credit and DebtDebtDebt Management

Credit cards are useful tools for providing us with money in advance.  This money is not free however.  It is an advance loan and must be repaid within the credit agency timelines.   In fact, the money you spend using a credit card payment is more expensive than your own money from your bank account […]

Read More…

January 10, 2022
Arthur Waring

How to Financially Protect Yourself When Planning for Retirement in a Pandemic

Retirement

The COVID-19 pandemic has changed the way we looked at our money forever. Studies have shown that 1 in 3 Canadians have felt an impact on their finances since the first lockdown happened in March 2020; an impact that has reduced their income, changed how they saved, and even pushed their retirement plans to a […]

Read More…

September 19, 2021
Arthur Waring

Bankruptcy Misconceptions You Need to Know About During a Pandemic

Bankruptcy

Alberta’s financial future is changing. While many people in our province found themselves out of a job once the pandemic hit, the Canadian government responded with a flood of different benefit programs designed to help lower-income workers keep their heads above water.  Insolvencies decreased across the country during the pandemic partly due to government financial […]

Read More…

August 24, 2021
Arthur Waring
Men sitting down overwhelmed with credit card debt

Credit cards are useful tools for providing us with money in advance.  This money is not free however.  It is an advance loan and must be repaid within the credit agency timelines.   In fact, the money you spend using a credit card payment is more expensive than your own money from your bank account […]

Read More…

The COVID-19 pandemic has changed the way we looked at our money forever. Studies have shown that 1 in 3 Canadians have felt an impact on their finances since the first lockdown happened in March 2020; an impact that has reduced their income, changed how they saved, and even pushed their retirement plans to a […]

Read More…

Alberta’s financial future is changing. While many people in our province found themselves out of a job once the pandemic hit, the Canadian government responded with a flood of different benefit programs designed to help lower-income workers keep their heads above water.  Insolvencies decreased across the country during the pandemic partly due to government financial […]

Read More…

Professional Affiliations

instagram facebook facebook2 pinterest twitter google-plus google linkedin2 yelp youtube phone location calendar share2 link star-full star star-half chevron-right chevron-left chevron-down chevron-up envelope fax