Are your monthly payments exceeding your available budget? Read the following carefully: you will probably find the appropriate solution allowing you to resolve this situation, avoid bankruptcy and keep your assets: the consumer proposal.
What is a consumer proposal
A consumer proposal is a formal process administered by a Licensed Insolvency Trustee (LIT). The proposal aims for a partial but final settlement of your debts, over a fixed period, all well adjusted to your ability to pay. Payments are made through us.
Under what circumstances is a consumer proposal relevant?
To determine if a consumer proposal (or other solution) is the right choice for you, make an appointment with us to discuss your specific case.
The proposal is relevant when you have assets that would be seizable in a bankruptcy context and you want to keep them or when you have a significant budget surplus, once the payment of debts has been removed. Other factors may also favor this option, such as the impact on your credit rating or lower payments than in a bankruptcy context when you have excess income.
If you choose to present a consumer proposal, we will work with you to craft a proposal that is as beneficial to you as possible.
In the following lines, you will find an explanation of the different steps to follow when submitting a consumer proposal.
What happens when you submit a consumer proposal?
We will file the proposal with the Office of the Superintendent of Bankruptcy (OSB). Once the consumer proposal is filed, you will stop making payments directly to your unsecured creditors. In addition, if your creditors have garnished your wages or have taken legal action against you, these actions are stopped definitively.
If your consumer proposal is accepted
You will need to pay a lump sum or make periodic payments depending on the terms of your proposal. You will keep your property. In case of refusal and with your agreement, we can always increase the proposal so that it is acceptable to your creditors and thus avoid bankruptcy.
Sample proposal …
You offer to pay your creditors 20% of your debts, in monthly installments of $ 350, over a period of thirty-six (36) months; payments are made into the hands of the trustee each month, and the trustee redistributes them to creditors at regular intervals.
When the consumer proposal is completed according to its terms, you are released from your debts. Your credit report is restored 3 years after the execution of the proposal. Only a Licensed Insolvency Trustee can file a consumer proposal on your behalf.
Only a licensed insolvency trustee may file a consumer proposal on your behalf.
See the following situations in our home page to better understand: Marc, tax-indebted worker; Pierre and Hélène have a serious financial problem.