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Questions & AnswersCategory: QuestionsConsolidation or Consumer Proposal?
Ida Martin asked 2 years ago

Consolidation or Consumer Proposal?

asked June 1, 2019 by Anonymous

What is the difference between a Debt Consolidation and a Consumer Proposal? Is there what’s the difference of what your allowed to claim under them?
I have government tickets and I owe ODSP, I’m on CPP-Disability which is taxable, I have a certificate of determination which gives me an even more of a discount. I’m married with 2 under 18 children both in school. My husband has paid almost all of his debt to ODSP due to me transferring my credits to him, and they went back to 2014 to present year. I owe over $15,000, yes that is due to an √ĄDMINISTRATIVE ERROR” to which I still have to pay; but, I want to know if this can be added to one of the debts.¬†
The debts that can be claimed under either one, same or different, do they how do they work? My husband has a good job now and that’s how he has been able to pay down two of his major debts, both Municipal, but his health has taken a turn for the worse and now he may have to go off on disability to which would change one of the above to bankruptcy, so I’m trying to get this done asap prior to that issue. What can I claim/not claim, in which part of these two areas? Can you get back to me asap.

1 Answers Staff Staff answered 2 years ago

It sounds like you may need tax advice first. We can’t advise you as to what you and cannot claim. Regarding your question about debt consolidation vs consumer proposal. Debt consolidation is when you pool all your debts in one place, hopefully with a lower interest rate, and pay your debt off that way. A consumer proposal is a formal process done through a licenced insolvency trustee. In this process, the Trustee will speak to your credits to work out how much you have to pay back and in how much time. This can be less than what you owe. You can read more about that here.

answered 2 years ago by Staff