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  2. Stop harassing CREDITOR CALLS immediately
  3. Get the largest DEBT REDUCTION that is fair

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Who We Are

afarber-burnaby-consumer-proposalsWe helped over 50,000 Canadians to become Debt Free in our 36+ Years of Experiences At A.Farber, we specialize in debt relief programs. In a simple manner, we can explain to you the differences between Consumer Proposals, Bankruptcy and Debt Consolidation loans.

These are some of the options available to you for debt management. Our Licensed Insolvency Trustee can help with debt relief ranging from credit card debt to tax debt.

  • 50+ offices across Canada (there’s one near you!)
  • More than 36 years of insolvency experience
  • Convenient meeting times and hours (and all meetings are confidential)
  • FREE face-to-face consultation with a trained Debt Administrator or Trustee
  • A complete review of your financial situation
  • Reasonable solutions to your debt problems

HOW WE CAN HELP

Consumer Proposal

A Consumer Proposal (applicable in Ontario and all other Canadian provinces) is a formal agreement between you and your creditors. It includes an offer to your creditors to settle your debt for an amount that is less than the total amount owing. A consumer proposal can result in as much as a 70% debt reduction. More importantly, it allows you to keep your assets, your car and your house. Read more about Consumer Proposals Benefits.

Bankruptcy

Bankruptcy is a legal process which provides a debtor, who is unable to meet his or her financial commitments to their unsecured creditors, with a process for eliminating his or her debts in an orderly manner. Read more about Bankruptcy Advantages.

Calculate Hows Soon You Can become Debt Free

For $35000 unsecured debt, in 5 years you will pay:

A. Farber R-Plan

Credit Counselling

Debt Consolidation

Do Nothing, Keep Paying

Consumer Proposal and Bankruptcy Trustees

proposal-creditorsDue to the name, many people think that a bankruptcy trustee can only help you with bankruptcy. This isn’t true. Trustees are registered and licensed to administer bankruptcies as well as consumer proposal processes. Trustees are also able to review your financial situation and provide you with details on the different options that are available to you.
Most trustees offer this initial consultation at no charge. After reviewing your finances, a bankruptcy trustee will present you with information on possible debt relief options. Each person’s situation will be different and thus each person will have different solutions presented. One option could be a consumer proposal.

A consumer proposal is a legal process through which you make an offer to your creditors to repay them on terms that you can afford. In most consumer proposals, you offer to repay a portion of the debt that you owe. The remaining outstanding debt will be forgiven once the proposal is complete. A consumer proposal is an option that many people choose, as it allows you to repay some of the debt without needing to repay all of it. A consumer proposal can only be administered by a licensed bankruptcy trustee.

Consumer Proposal Details

If you decide that filing a consumer proposal is the right option for you, your bankruptcy trustee will determine what a fair offer to your creditors will be. This is done by looking at your current financial situation. The trustee will then send the proposal to all of your unsecured creditors.

If you intend to keep your house or car (and can continue to make the payments) then you will have to make additional payments to your trustee to compensate your creditors for the equity that you own in these assets. If you cannot continue to make the payments on your secured debt, then the asset must be returned to the lender. If this happens, any shortfall against the outstanding loan that the lender incurs when selling the asset will be included as an unsecured debt.

In addition, a consumer proposal can also not include court ordered fees such as alimony or child support.

Your creditors will then have 45 days to decide whether or not they will accept the proposal. If the majority of your unsecured creditors vote to accept the proposal, then all of your unsecured creditors are bound by its terms.

In general, most consumer proposals are accepted as long as they are fair. This is because, in the majority of situations, a person who is unable to get a consumer proposal accepted will have no choice but to file for bankruptcy. In a bankruptcy, creditors do not typically get very much. Therefore, creditors would rather get something over nothing and so they vote to accept the proposal.

You receive legal protection once your proposal is accepted. This means that your unsecured creditors cannot contact you directly to collect their debts. All communication will be done through your bankruptcy trustee. It also means that creditors are not able to send collection agencies after you. This can be a big relief as calls from collection agencies can be harassing and stressful. In addition, civil legal action against you to collect unsecured debts stops when you file.

Your Duties

burnaby-trusteesUnder a consumer proposal, your main duty is to make the proposal payments as agreed to. These will be made directly to your bankruptcy trustee who will then distribute them to your creditors. There are no additional administration fees associated with a consumer proposal. All fees are taken from these proposal payments.

If you miss three payments over the life of the proposal, your proposal will be annulled. This means that your creditors will be free to take legal action against you for the full amount of your debt. For this reason, it is important that you make your payments.

In addition, you will be required to attend two financial counselling sessions. In these sessions, you will learn budgeting and money management tips as well as information on how you can rebuild your financial life and your credit rating once your proposal is complete. Your bankruptcy trustee will ensure that you receive this training.

You are also required to keep your bankruptcy trustee up-to-date on your current contact information. If you move, change jobs or change your phone number, you need to make sure that your trustee receives the updated information. This is because your trustee needs to be able to contact you throughout the process.

MORE THAN 50000 SATISFIED CUSTOMERS

Thank you and the staff of A. Farber & Partners for their outstanding service in helping my wife and I turn our lives around. We couldn’t have done it without your help. We know we picked the right people to help us.

Dan

I just received your letter stating my proposal was accepted and I wanted to say THANK YOU! I feel like I get another chance for a better life for myself and especially my son and for that I am truly grateful.

M.J.

I got my paperwork in the mail yesterday informing me of my discharge, so thank you very much! I wanted to say “Thank You” for everything you have all done for me. I hope you and everybody over there have a great and safe happy holiday.

N V

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