Debt can be a major source of stress, but there are options available to help you regain control of your finances. One such option is a consumer proposal, which is a powerful debt relief tool that can help you settle your debts, for less than what you owe.

But what if you have too much equity in your home? It's a common concern for many people who are considering a consumer proposal. Fortunately, there are ways to use a consumer proposal to get out of debt while keeping your home equity.

A consumer proposal is a legally binding agreement between you and your creditors to settle your debts. This agreement is administered by a licensed insolvency trustee (LIT), who will work with you to determine an affordable monthly payment based on your income and expenses. You'll make payments to the LIT, who will distribute them to your creditors. The proposal can also include a provision for the sale of assets, such as your  home, to pay off your debts, however, this is not usually necessary.

Here are some of the benefits of using a consumer proposal to get out of debt:

• Having equity doesn't mean you can't file a consumer proposal. Your LIT will consider the amount of equity you have in your home, but it's not the only factor that determines your eligibility for a consumer proposal. They'll also look at your income, expenses, and other assets. Even if you have significant equity in your home, you may still qualify for a consumer proposal.
• You can keep your home. If you have too much equity in your home, you may be worried about losing it. But with a consumer proposal, you can keep your home and continue making mortgage payments. Your trustee will work with you to develop a repayment plan that takes your equity into account.
• You can protect your assets. In addition to your home equity, you may have other assets that you want to protect. A consumer proposal can help you protect these assets from seizure by your creditors.
• You can avoid filing for bankruptcy. Many people assume that filing for bankruptcy protection is the only option to eliminate their debts. Bankruptcy protection is in fact a great tool for some people to get rid of their debt, however, when you have equity in your home, filing a consumer can be the better option.
• Your LIT will help you every step of the way. Filing a consumer proposal can seem complicated, but your LIT will guide you through it every step of the way. They'll help you prepare and submit the proposal, negotiate with your creditors, and ensure that you understand your obligations under the agreement.
• You can get back on track. A consumer proposal can help you get back on track financially. By reducing your debt and protecting your assets, you can start to rebuild your credit and move forward with your life.

In conclusion, a consumer proposal is a powerful tool for debt relief, even if you have too much equity in your home. It can help you reduce your debt, protect your assets, and get back on track financially. If you're struggling with debt, talk to a licensed insolvency trustee to learn more about how a consumer proposal can help you.