Consumer proposal

Your monthly payments exceed your available budget? Read the following: You will probably find the appropriate solution to resolve this situation, avoid bankruptcy and keep your property.

What is a consumer proposal

A consumer proposal is an official, legally binding procedure that is administered by a licensed insolvency trustee (LIT). As part of this process, we work with you to develop a “proposal” – an offer to pay creditors a percentage of the amount owed to them, or to reschedule the debt, or both. The deadline for a consumer proposal can not exceed five years.

Payments are made through us, and we use the money to repay all your creditors.

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 particular case.

We will evaluate your financial situation and explain the advantages and disadvantages of various solutions that could help you solve your financial problems.

If you decide to submit a consumer proposal, we will work with you to develop a proposal that is right for you and also suitable for your creditors.

The following is an explanation of the different steps when you submit a consumer proposal.


What happens when you submit a consumer proposal?

1.We will file the proposal with the Office of the Superintendent of Bankruptcy (OSB). Once the proposal is filed, you will stop making repayments directly to your unsecured creditors. On the other hand, if your creditors collect your salary (wage garnishment) or have sued you, these actions are suspended.
2. We will present the proposal to your creditors, as well as a report on your personal situation and the causes of your financial difficulties.
3.Creditors have 45 days to accept or reject the proposal.

If your consumer proposal is accepted

If your consumer proposal is accepted,
• you will be required to pay a lump sum or make periodic payments according to your terms of your proposal;
• you will keep your property.

If you respect the conditions of your proposal

If you fully comply with the conditions, you will be officially released from the debts included in the proposal.

Once you have fulfilled the conditions of your consumer proposal, you will receive a certificate of full execution of a proposal. To make sure your credit report is up-to-date, you will send a copy of this document to the major credit reporting agencies. Make sure you keep all your proposal documents for future lenders to refer to.

What is the impact of a consumer proposal on my credit rating?

Your ability to obtain credit and make use of credit after submitting a consumer proposal depends on your ability to convince lenders of your financial maturity and ability to repay debt.

Sample proposal …

Your offer to pay your creditors 50% of your debts, per monthly payment of $ 350, over a period of thirty-six (36) months; the payments are made in the hands of the trustee on a monthly basis, and the trustee distributes them to the creditors at regular intervals.

When the proposal is completed according to its terms, you are released from your debts. Your credit report is re-established 3 years after the execution of the proposal.

Upon deposit of the proposal in the hands of the trustee, the creditors are notified by the trustee; they are no longer entitled to sue you for the recovery of their debt, and must interrupt any measure of collection.

To be accepted, the proposal must receive the consent of a simple majority in value of the claims proven by the creditors. The acceptance rate of consumer proposals is high.

Only a licensed insolvency trustee may file a consumer proposal on your behalf.

Concrete situations

See the following situations in our home page to better understand: Marc, tax-indebted worker; Pierre and Hélène have a serious financial puzzle.