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Pros of Consumer Proposal |
Cons of Consumer Proposal |
| You can pay off your debt for less than the full amount | Consumer offers are more expensive than other debt reduction options, such as debt management plans. |
| Pay off your debt in one consolidated payment, which is easier to manage than juggling multiple payments. | This proposal will become part of a permanent public register. |
| Interrupting the process by sending a letter of recommendation protects you from lawsuits and enforcement actions, such as recovering your salary. | Repaying the loan at the consumer’s request will have a negative impact on your creditworthiness. |
| Eliminate 60 or less unsecured debts. | This agreement is legally binding and the fees paid are non-refundable in the event of a breach. |
| You can avoid more serious credit losses due to bankruptcy, debt repayment, or default. | |
| In the event of bankruptcy, you can protect yourself from the sale of assets such as your home and car. | |
| Once you agree, your payment will be approved and will not increase regardless of whether your financial situation improves. |