Consumer Proposal Law and Legal Definition
Consumer proposal is also known as personal proposal to creditors. A consumer proposal to creditors is a legal procedure that is administered for the courts by a licensed trustee in bankruptcy. It is an alternative to going bankrupt. Consumer proposal facilitates in repaying the debt in whole or in part. However, the time is extended to repay the debt. It is similar to debt management plan.
Consumer proposals to creditors were created to deal with unsecured debt. Unsecured debt includes:
1.Credit cards
2.Lines of credit
3.Personal loans
4.Income taxes
If a person is in financial trouble and s/he has the ability to repay a portion of the debt, perhaps a consumer proposal to creditors is the right solution.
