Lazard & Associates Inc

Professional Consumer Proposal Trustees

A consumer proposal is a smart, legal alternative to filing for bankruptcy. Essentially, a successful consumer proposal allows you to retain control of your assets, and an agreement is made with creditors that have extended unsecured credit to you where they agree to accept less than what is owed to them in full satisfaction of their claim against you. Consumer proposals are a legally binding agreement made between yourself, creditors, and a licensed insolvency trustee. Once a consumer proposal is filed, you have legal protection against creditors and debt collectors. This can be a huge relief and allow clients to take the proper steps to resolve their debt and revive their credit.

Lazard & Associates Inc

How a Consumer
Proposal Works

A consumer proposal is used in cases where a client is unable to repay the debts that they owe in full, but are able to pay off a portion of the debt. We will submit the proposal to the creditors that you owe money to, guaranteeing that they will receive a fixed amount from the debtor each month, amounting to whatever the proposed portion of debt repayment is stipulated in the consumer proposal. If accepted by the creditor, the consumer proposal is legally binding. Not everybody qualifies for a consumer proposal, however. You must prove that you are in financial distress, and are considered insolvent. An insolvent person is someone who is not bankrupt and resides or conducts business in Canada. They must owe more than $1000 and be unable to repay the full amount of their debt, have ceased repaying it or who’s assets, if sold, are not enough to repay the debt they owe. If a client is not found to be insolvent, they won’t qualify for a consumer proposal.

Lazard & Associates Inc

Take Back Your
Financial Freedom

There are many advantages to a consumer proposal. One of the primary advantages is it helps you avoid bankruptcy. This will eliminate the stress of needing to acknowledge you went bankrupt on any financial applications moving forward, which can make building your credit and starting anew quite difficult. Unlike bankruptcy, you are able to pay off a consumer proposal early if you find yourself in a financial situation where this is possible. This gives you the option to begin rebuilding your credit sooner! Lazard & Associates is the perfect credit counseling team to help you take back control of your financial freedom. Contact us today to begin your journey to financial stability.

Consumer Proposal FAQs

You should consider consumer proposal when you are unable to repay the debts that you owe in full but are able to pay off a portion of the debt. To be eligible, you must be an individual who owes at least $1,000 in unsecured debt. The maximum amount you can owe and still be eligible for a consumer proposal is $250,000. Talk to us at Lazard and Associates about your consumer proposal concerns

A consumer proposal can include any type of unsecured debt. An unsecured debt is one that is not backed or secured by an asset you possess, such as a mortgage loan, which is secured by your home. Examples of unsecured debts include credit cards, personal loans, payday loans, lines of credit etc.

Your individual consumer proposal filing does not go on your spouse’s credit record. However, if you and your spouse have joint debts, your partner may be held liable for the whole debt if you file a consumer proposal. If you and your spouse both have a lot of personal debt and joint debt, filing a combined Consumer Proposal can be a good idea.

If you file for a consumer proposal, you keep all your assets, including any tax returns, investments, and home equity. If you own a home or a car, you must continue to make mortgage or auto loan payments to keep them, as these debts are not included in a consumer proposal. For homeowners with significant credit card balances and other unsecured loans, a consumer proposal is a realistic debt reduction option.

A consumer proposal will have an impact on your credit score making it less likely that you will be able to get credit. However, a consumer proposal will only stay on your record for three years after your final payment, which allows you to begin a fresh. Speak to an associate at Lazard and Associates about your situation.

You will need to hand over your credit cards to your Licensed Insolvency Trustee when you file a consumer proposal. Unless it’s a prepaid or secured credit card, you won’t be able to apply for a new credit card while making payments on your proposal. Reach out to our experts at Lazard and Associates if you think a consumer proposal might be for you.

Filing a consumer proposal has no impact on secured debt, such as your mortgage and car loan. You must continue to make your mortgage payments on a regular and timely basis. If you don’t, your mortgage lender may take action to confiscate your house due to mortgage arrears. You should find it easier to keep making vehicle and mortgage payments if you use a consumer proposal to consolidate and pay off all your unsecured obligations. Your Licensed Insolvency Trustee at Lazard and Associates will help you create a budget that helps you to meet all your responsibilities.

The proposal will be cancelled if you skip three months of payments. Your creditors cannot take any further action against you as long as you fulfil the provisions of your plan. Here at Lazard and Associates, we will help you create a budget that lets you to meet all your financial responsibilities.

Our Industry Experience

Why Choose Us?

It can be quite difficult to trust someone with your finances, but when it comes to personal bankruptcy, there’s no one you can trust more than Lazard & Associates. We help you reestablish your credit, pay of your debt and avoid bankruptcy through consumer proposals.

Lazard & Associates Inc

What Our Satisfied Clients Say About Us

Very Professional, Very Understanding and Above All Very Kind Hearted Team! First time I went there I felt like a complete Loser to say the least!!! After discussing in details with Happy-go-Lucky Louise I felt 90% of my anxiety immediately gone! No word of a lie I smiled and laughed all the way home!!”

– Satisfied Client

I found Lazard and Associates to be professional and caring. After getting myself into some serious trouble, I am back on track with their help. Avoiding Bankruptcy and doing a proposal has been very helpful in reestablishing my credit quickly. I have recommended them to friends and family and happy to see that it isn't a cookie cutter approach. They take the time to do what's best for the client.”

– Satisfied Client