Consumer Debt Proposal Information for Canadians in Medicine Hat

The resolution of your debt problems may already be out of your hands. In other words, if budgeting and cutting expenses hasn’t worked, it be high time to opt for other means of debt relief such as a Medicine Hat consumer proposal. A consumer proposal is essentially a legally binding agreement between you and your unsecured creditors, which allows you to settle your various debts by paying a percentage of the original amount you owe each creditor. Here is some consumer debt proposal information for Canadians to help you decide if you should go for a consumer proposal or explore other methods towards legal and effective debt relief:

The Consumer Proposal

A consumer proposal, due to its complexities and possible repercussions, should be decided on and initiated with the help of a licensed bankruptcy trustee. This agreement for debt settlement has to be applied for and drafted in collaboration with a trustee, and needs the approval of a majority of the creditors involved prior to taking effect.

There are many advantages to be gained with a consumer proposal. Among them are:

• A halt to and legal protection from collection activity, such as phone calls and mail from creditors and any upcoming wage garnishments.


• The retention of assets that may otherwise be taken by the courts for liquidation and debt payment. These include the your home, vehicles, furniture, and other possessions.

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