If COVID-19 taught us anything, it confirmed how many people live paycheck to paycheck and use debt to survive.

People struggling financially with debt carry an overwhelming burden. Debt limits your flexibility in a crisis. When debt payments are a big chunk of your paycheck, you can’t save for an emergency. More debt is not the answer.

It is possible to get your life back on track and the process begins with a frank discussion of your situation with a debt professional such as a Licensed Insolvency Trustee.

A Licensed Insolvency Trustee is licensed and federally regulated and understands the nuances of all available debt relief options, whether it’s bankruptcy, debt consolidation, consumer proposals, or counseling. credit matters. They will work with you to develop a personalized debt repayment plan, helping you make an informed decision on how to get rid of overwhelming debt.

One option, often misunderstood, available only through a Licensed Insolvency Trustee, is the Consumer Proposal.

An alternative to bankruptcy

Many fear that they will have to file for bankruptcy, but this can be avoided by filing a consumer proposal instead. A consumer proposal is a legal debt relief solution. Legislated by the federal government, it allows you to consolidate and pay off your debts at a price lower than what you owe. You pay your creditors back a percentage of what is owed in return for full debt forgiveness. It is not uncommon to be able to amortize up to 70% of your debts.

A consumer proposal can eliminate almost all unsecured debt, including credit card debt, bank loans, payday loans, tax debt, and some student loan debt. Payments can be spread over a maximum of five years.

Other advantages of consumer proposals

For starters, a proposal does not affect your primary residence mortgage or a secured auto loan. You are allowed to keep your assets, including your tax refund.

A Consumer Proposal is a legally binding agreement and the only debt settlement program sanctioned by the Canadian government. It can even help you deal with creditors that are often considered more worrying, such as the Canada Revenue Agency and payday loan companies. Because this is a legal process, a proposal puts an end to collection appeals, wage garnishment, and any legal action taken by your creditors to collect.

Customers are drawn to consumer proposals because it is a safe and reliable way to get out of debt; it may also be the cheapest. This is because it reduces your monthly payment to an amount you can afford and the full repayment period is interest free.

Another big advantage of the consumer proposal option is that you pay exactly the amount you negotiated with your creditors at the start of the process, not a dime more. There are no upfront or additional costs to worry about. Once you have fulfilled all the conditions of your proposal and all payments have been made, your debts are eliminated.

Ted Michalos is a Licensed Insolvency Trustee and Consumer Proposal Administrator in Guelph. He strongly believes that debt management advice should be honest and straightforward. “What you need is friendly advice, but most of all professional knowledge to point you in the right direction. You need someone, like an LIT, who is trained and certified to understand all of your debt relief options and who will work with you to determine what is right for your specific situation.

In order to file a consumer proposal, you must work with a Licensed Insolvency Trustee. Hoyes, Michalos & Associates Inc. has a 99 percent success rate for the proposals they file. Douglas Hoyes and Ted Michalos are the co-founders of the company, which specializes in providing debt relief solutions. They have helped over 60,000 Ontario residents get out of debt since 1999.

As trustees, they help people with debt explore their options. They do a full debt assessment, examine your income and debts, learn about your specific financial situation, and help you find the best solution. Anyone with debt issues who lives in Guelph will work personally with co-founder Ted Michalos.

Hoyes, Michalos et associés inc. has offices in Guelph and across the province and can conduct assessments by phone and video conference. Get a quick and confidential notice or book a free, non-binding telephone consultation.