Canadians have access to a lesser known strategy for debt management: this is known as consumer offering. Consumer offering is widespread in big cities like Toronto and Ontario, where incomes are high but debt is also above average.
The consumer proposal is an alternative to bankruptcy and has many advantages. The most important benefit is that your creditors cannot bring you to court, sue you, or collect your salary after your client's offer has been submitted.
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You get instant protection from your creditors. Automatic protection lasts for 45 days. The coverage remains after 45 days if the bond recipient accepts your offer. Second, interest on all of your credit cards will be frozen the day you place your consumer offer.
No additional interest payments are required. Third, most wage arrests stopped immediately. The only exceptions are usually prohibitions against children and spouses. Fourth, consumer supply binds a large part of the country's debt.
Even though you owe Canadian Income taxes, the proposal may consider it. Ultimately, consumer bidding is a legally binding process. It is managed by an official, a state-approved trustee and controlled by a court so that once a consumer offer is accepted, creditors can't change their mind and ask for more money.
Consumer offers are not for everyone. You must have an income to make payments each month. If you are on a low income, personal bankruptcy may be a better option.