Help From A Consumer Proposal

A number of my childhood friends ending up facing bankruptcy throughout the crisis in 2008. It was a severely sad time and everyone lost next to everything. There was however one interesting thing I learned from the entire process. It has to do with the Canadian laws and the bankruptcy act of Canada in particular.

We all know about bankruptcy. It’s something we use in dire needs, in order to eliminate all our debts by selling off all our assets and returning what we can to all of the creditors.

But did you know there’s something else you can use? Another tool in the tool box if you will. If you’re interested in keeping your assets (for example you have a lot of equity in your home and you don’t want to give that up). You can use something called a consumer proposal.

consumer proposals in Ontario

Now, what the consumer proposal process really looks like is something like this:

  1. Meet with a Licensed Insolvency Trustee
  2. Discover your debt situation and see if a CP (Consumer Proposal) is even the right option.
  3. The LIT (Licensed Insolvency Trustee) will literally put a proposal to all your creditors together that you will only pay so much. For example one saying that you can make 50 cents on the dollar over the next five years. If more than 50% of the creditors (weighted debt average) agree, the proposal is then deemed accepted by everyone.
  4. You will then make fixed monthly payments to the LIT and they will pay creditors accordingly.

Hopefully you will find this option as life changing as I did!

For more information about consumer proposals in general, visit:

Honesty vs. Accuracy

Here at True Man Financial, we believe there’s a big difference between being True and being a True Man, or as some would refer, an honest man. Let us break down the difference. This was something our founder, Jared, was openly exposed to (or had the light shine on him) after a meeting with Hoyes Michalos and other associates. Jared was in trouble at the time, and it was their conversation that helped him out. Let me show you what he began to understand.

Being TrueWells Fargo

This is about as specific as you can get. It’s the truth. It’s not providing incorrect information. “The
markets are going up” – typically hard to say if that’s true no matter when it’s said or who says it. “You’re skimming money from your clients” – when Wells Fargo was accused of this and agreed to pay their fine and fire staff, that was a true statement.

Being a True Man

Now, interestingly enough, you don’t need to have the above in order to be considered a True Man. At least for the most part. Being a true man is having the utmost honesty and integrity based on the information you have at hand. You can be wrong sometimes, but if you clearly state uncertainties, or correct any unknowing false information provided, you can continue to be an honest man.

To add some fun flare to this post, leave it to the Japanese to test their citizens of honesty:

You can find many more of these types of videos on YouTube.