If your proposal is rejected, you’ll be out about $750 but still have all your other options available. However, the problem is that your creditors will now know everything about your assets and liabilities – . This can make it harder to negotiate payments for other options in the future, when your mortgage comes up for renewal. The true cost of a consumer proposal can go well beyond the dollars and cents.
If your consumer proposal is accepted and you miss 3 monthly payments, the proposal will be automatically cancelled and you won’t be able to reapply. Collection activities will resume while you try to figure out what to do and your creditors will come after you again for everything you still owe – knowing full well about all your assets and liabilities. Whether successful or not, consumer proposals are also public record. Finally, it will damage your credit rating for as much as 8 years (5 years of payments plus 3 years once they’re done).
Make sure that a consumer proposal is truly the best option for you before committing to one, . If you have any consumer proposal questions we can help you figure them out for free.