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Bankruptcy, Consumer Proposal, and Debt Settlement

Bankruptcy, Consumer Proposal, and Debt Settlement | GEM Debt Law

Do you ever wonder what Bankruptcy, Consumer Proposal, and Debt Settlement actually mean? Do you wonder what each of these things really does, or their effect on your life? How these procedures help or hurt you, or what the right option actually is?

When your financial health is at risk, seek professional help. There are many ways to find debt relief and get back on the right track. It helps to have a professional help guide you to the right solution. Below we are going to describe 3 of the most common ways to resolve the excessive debt.


It’s unfortunate that some have no other option, but Bankruptcy. If you have the option to avoid bankruptcy, do so. Bankruptcy is a legal agreement that involves giving up all your assets to a licensed insolvency trustee in exchange for full relief of your debt.

Also, Bankruptcy has the longest lasting damage on a person’s credit. It is very difficult to rebuild and people often regret not taking another option.

Consumer Proposal

Through a licensed insolvency trustee a proposal is made to all of a person’s creditors. If more than half of the creditors agree then the proposal is accepted and the person filing typically has up to five years to pay it off.

The benefit is regular payments typically much lower than what they are currently paying, as well as most likely having all their assets protected. The drawback is that a Consumer Proposal is almost as damaging to a person’s credit as Bankruptcy. The effect on a person’s credit lasts for years.

Debt Settlement

Debt Settlement involves negotiating with creditors, collection agencies, or their representatives for the purpose of obtaining an agreement, or settlement, for a reduced payment of the debt. In other words, approached properly and methodically, creditors usually are willing to accept a much lower amount to settle and close-out your outstanding accounts.

After successful negotiations and payment of funds to your creditors, we will demand formal release letters recognizing the settlements. We will ensure that these positive changes are displayed on your credit report.

You pay less, save money and the collection calls stop. After it is done, it is much easier than the earlier solutions to rebuild your credit. The most important thing is to set you up so you NEVER need these services again! As we like to tell people, we have no interest in repeat business!

Before jumping to one of these options, consider speaking with one of our debt relief professionals and get the advice needed. You want to maintain or at least save your credit. Reach out to us today to learn more at 1866.570.9988 or email [email protected] or fill out our website contact form.

We’re happy to help!

GEM Debt Law


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