Consumer proposals are, in effect, proposals for the elimination of a certain part of the debts of an individual on the verge of bankruptcy. They must be framed with the help of a consumer proposal administrator who draws out a legal framework for the procedure. These proposals are legally binding and hence they must be formulated very carefully. A consumer proposal has to be voted in favor of by the creditors before a part of the debts is waived off. Only a part of the debts are usually written off, but negotiations are always possible.
- Consumer proposals can only be made by people who fulfill a certain criteria. That must be kept in mind while framing a proposal.
- Details of income and assets must be stated in order to prove one’s eligibility for a debt waiver.
- In most cases, only unsecured debts can be included in a consumer proposal and this must be kept in mind while drafting a consumer proposal. All the debts of the individual must be clearly specified as it is will involve the law if approved; a consumer proposal must include factually correct information.
Consumer Proposal Form
Sample Consumer Proposal
Consumer Proposal Example
Consumer Proposal Template
Consumer Proposal Format
Consumer Behavior Research Proposal
Joint Consumer Proposal
Consumer Credit Proposal
There are distinct advantages of consumer proposals. If such a proposal is rejected, a person is declared bankrupt. While that is not desirable in the first place, consumer proposals lend a degree of clarity as to exactly what monthly payments are required to pay off a debt. However, because they have to be approved by all creditors associated with the individual, they have to sound convincing and impressive.