When you are in debt, you plan to file a consumer proposal as a solution. This consumer proposal Toronto is between you and the unsecured creditors. It allows you to repay a small portion of your debt. The reduction can be as much as 80%.
Cover your reduced debt with a precisely planned repayment schedule. If you finish the payments with a few credit counselling sessions, your proposal can be complete, and the debts obtained from unsecured creditors are planned to be in full.
The consumer proposal Toronto will take weeks to submit your proposal, make amendments, or contact the creditors. When your proposal is accepted, you have five years, or 60 months, to fulfil the terms of the proposal and relieve yourself of financial stress.
Is there a way to pay off a consumer proposal early?
DF Credit Solution says applicants can tackle paying sooner if they like. No rule says you must consider the maximum allowed time for completing the payment. Here are a few ways to speed up the repayment process:
Pay more:
The consumer proposal agrees you can send one payment each month to your LIT (Licensed Insolvency Trustee). But when you want to reduce your payment time, switch from monthly to bi-weekly payments. It can increase the frequency of payments and trim down the time to complete the proposal more quickly. Discuss this option with your trustee.
Make larger payments:
Increase the size of your payments to speed up your repayment process. You can increase it by $30 or so to make a difference. It should not affect your budget as well. When your income increases, you can consider this approach. Speak with your trustee and amend if you want to boost the payment amount.
Pay a lump sum:
Give your trustee a lump sum and speed the process by whittling down your debt. It can shorten your repayment plan. Applicants can choose this option if they receive a bonus, a large tax refund, or a surprise inheritance.
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