Consumer proposals are becoming the best method of dealing with debts. If you are in confusion to either file bankruptcy or go with consumer proposal, then you can find here in Forbes.com on the advantages of going with consumer proposal instead of bankruptcy.
One of the common misconceptions is that when you own a house, you can’t make a proposal which isn’t true. Frankly, speaking for people who own house the best solution to deal with debt is a proposal.
The only key difference between a consumer proposal and bankruptcy is based on the proceedings with assets. In case of bankruptcy all the assets gets transferred to the trustee from you. They are then given rights to sell off the assets to get back the money to distribute to the creditors. When you do a consumer proposal, your assets will not get transferred to the trustee.
The total value of the assets is important. Whatever the proposal may be the money offered to the creditors will be more when compared to that of the money received through bankruptcy.The advantages of consumer proposals are better than that of bankruptcy. You can pay up to 70% less through a consumer proposal. This basically means the home value will disturb the money offered to the creditors.
The market value of the house divides the home value. A rough estimate of selling price if the house, if it is ready to be sold today, will be the market value. If you can’t figure out a number, then you can get in touch with the real estate agents to get an estimated value. Many real estate agents may provide an estimate for free, but others may charge a small fee.
You can’t sell a house without spending money. The cost spent in settling the mortgage will be taken off from the estimated value to end up with an estimated equity.