The solution for you? … Advantages … What is a consumer proposal? … Questions about consumer proposals …

The consumer proposal process in seven steps, from assessment to completion, and how it would affect you. Step 1: Assessment.

Financial and debt terms, legal references, proposal-related documents and events, with links to further details.

The “Standard”

Examples - Part 1: We provide these examples of payment terms to help you understand how your proposal can be designed to fit your personal circumstances. All of the examples listed have actually been used by Hoyes, Michalos & Associates Inc., a trustee firm operating in Ontario.

A fixed payment for a fixed period of time. This is most common type of consumer proposal.

Example: $300 per month for 48 months to repay $14,400.

“Back-end loaded”

Payments change over the course of the proposal. They start out lower and then increase over time. This type of proposal is often used by people who expect a much higher income in the future, such as those just starting new jobs. They are also used by folks who need lower payments at the beginning of their proposal, to allow them to catch up on their secured debts (mortgage, cars, etc).

Example: $200 per month for 12 months, followed by $300 for 24 months and finally $400 for the final 12 months to repay $14,400.

“Front-end loaded”

The opposite of the back-end loaded proposal. In this type of proposal, the payments decrease over time. They are often used by people who know their income is going to drop.

For example, someone planning to retire in two years might want the payments to drop when they switch to pension income.

Example: Pay $400 a month for the first 24 months and then $200 a month for the next 24 months to repay $14,400.

“The Seasonal”

This type of proposal has different payment terms depending on the time of year.

This type of proposal is often used by seasonal workers – people in the construction industry are a good example of folks who can benefit from this type of proposal.

Example: Pay $400 a month for May to August, pay $300 a month September, October, March and April, and pay $200 a month for November to February for 4 years to repay $14,400.

Continue to part 2 of Examples of Payment Terms