Why A Consumer Proposal May Be Recommended By A 4 Pillars Debt Consultant

One of the many reasons consumers in Victoria benefit from working with a 4 Pillars debt consultant is the personalized recommendations they receive on options to resolve their debt problems. One of these options may be a Consumer Proposal, but it is not always the right choice for every consumer.

Often consumers have multiple types of debt. This includes both secure debt, such as homes or cars, as well as unsecured debt, which is typically credit card debt and some types of personal loans. A Consumer Proposal is used to address unsecured debt. At the same time, there is no loss of assets, so the consumer is able to keep their home, vehicles, and other assets.

Managed by a LIT

The Consumer Proposal is managed by a LIT or Licensed Insolvency Trustee. The 4 Pillars debt consultant does not become involved in any aspect of the Consumer Proposal. The LIT will file the proposal, notify creditors, and manage the creditor meeting if required.

It is still up to the creditors to vote and accept or refuse the proposal. Once accepted, the LIT will receive your payments and manage the payments to the creditors as per the proposal. It is essential to make all payments on time and in the full amount.

Benefits

There are several benefits to a Consumer Proposal for consumers in Victoria. These will be explained by the 4 Pillars debt consultant, along with any potential challenges. In general, this avoids the need for bankruptcy, allows the consumer to retain assets, and stops the accumulation of interest on unsecured debts during the process.