How to Qualify Consumer Advice
Typically, consumers’ advice is for debt, such as personal loans, credit cards, credit cards and no income tax payments. Excluding assets funded by secured debt, such as auto payments and mortgage loans.
Lalonde said a licensed bankruptcy trustee looks at your complete financial position – the value of assets, equity in your home and daily living expenses. Then there is a thorough budgeting process that can understand the rewards one can afford.
“We will pay all the money to see what is realistic and what is reasonable, depending on the individual’s situation,” she said. “If the money is left at the end of the month, then we will see how much money we can offer to creditors.”
On average, creditors owed 20 to 30 cents per dollar, but no two people would pay the same amount on the same debt. Proposals are tailored to each person’s specific situation and to the specific lender they deal with.
What happens during consumer advice
Laronde said that once a proposal is made to the creditor, the lender has a 45-day response – accept or reject. She added that while most were accepted, the trustees had to negotiate a small portion of further.
When accepting the proposal, monthly investment recovery funds will be set for clients for up to five years without additional conditions.
This means that if the client’s financial situation changes after accepting the proposal, such as receiving the inheritance rights, it is not necessary to disclose it to the creditor.
“Once it’s resolved, it’s resolved. You just need to pay,” Laronde said.
