Consumer Proposal process in Goderich
What is a Consumer Proposal?
An Insight into Consumer Proposals in Goderich
A consumer proposal is a legally binding agreement that alters your repayment terms. Moreover, it is a formal recommendation to your creditors to pay off the debt that results in extending the time for repayment, lessening the amount of the debt, or lowering interest payments.
Do not worry!
The creditor receives all repayment amounts only through a Licensed Insolvency Trustee at Goderich. For security reasons and government regulations, Consumer Proposals can only be created by a Licensed Insolvency Trustee.
To initiate the consumer proposal process, you need to:
- Provide the Licensed Insolvency Trustee (LIT) with a complete list of all your assets and liabilities.
- Attend the preliminary meeting with the creditors if an appointment is requested.
- Attend two counseling sessions.
- Advise the LIT of any address change.
- Assist the LIT during the management of the proposal.
Solutions offered by our Goderich Consumer Proposal Trustee
While a consumer proposal may not be for everyone, it is one of the solutions provided by our debt counselors and Licensed Insolvency Trustees in Goderich. Trustees like Dana MacRae offer a bankruptcy alternative, answering your debt issues.
Call (800) 665-9965 to discover more about Dana MacRae’s services and which financial solution is the right option for you.
Consumer Proposal Process
Understanding the consumer proposal process in Goderich
The process for a consumer proposal in Goderich and across Ontario involves the below steps:-
- The Licensed Insolvency Trustee files the proposal with the Office of the Superintendent of Bankruptcy (OSB).
- After you file the proposal, you quit paying your creditors.
These actions get suspended if your wages have been garnished or you have pending lawsuits. The Licensed Insolvency Trustee submits the proposal to the creditors. This report contains your current financial situation and the reasons for the economic hardship.
Meeting of Creditors
A meeting is immediately arranged without hesitation whenever one or more creditors are owed more than 25% of the total proven claims. Creditors have up to 45 days to either accept or reject the proposal or, if a conference of creditors is held, before or during the meeting. The Superintendent of Bankruptcy can also request the Licensed Insolvency Trustee to call a session within those 45 days. Upon being called, the creditors’ meeting must be held within 21 days. At the meeting, the creditors vote to accept or reject the proposal. Regardless of any objections, the proposal is automatically approved if no meeting is summoned.
At the meeting, there is a vote to accept or reject the consumer proposal. Here are the steps: –
- A creditor’s acceptance or rejection counts as a vote.
- A simple majority (over 50%) decides. The number of votes should be the same as the proven claims’ total value. For example, if the proven claims total $150,000 and the votes represent at least $75,001 of the shares, that is the simple majority that governs the ultimate decision. All other unsecured creditors must accept that vote.
- If there is no quorum of creditors present, the proposal is accepted automatically.
If the proposal is accepted, any interested party has 15 days to ask the Licensed Insolvency Trustee for a review by the court. The court approves the proposal if there is no request.
Acceptance of a Consumer Proposal
If the consumer proposal is accepted in Goderich, you:
- Are liable for paying the LIT either a lump sum or periodic payments.
- Will be needed to conform to any other conditions in the proposal.
- Retain all properties and investments as long as you continue payments.
- Must attend two financial accounting sessions.
Rejection of a Consumer Proposal
If the consumer proposal is rejected in Goderich, you:
- Make changes and resubmit during the creditor consideration period or at the creditor’s meeting
- Think about other alternate options
- Declare bankruptcy
Meeting the Conditions
You would be legally released from the debts listed upon meeting all conditions in the proposal.
There are circumstances in which you can revive a proposal if it is canceled. If you miss three payments, or if your payments are above three months past due, the proposal gets withdrawn automatically. Your creditors are free to take action to gather the money they are owed, including accrued interest, unless the court ordered otherwise or the proposal has been amended.
Do you feel this is a complex situation?
If you have any queries or concerns, contact our experts at Dana MacAre. They are willing to help and clarify as much as possible. We help you make the best decision regarding your financial struggles. We are experienced and genuinely concerned about your future.
Hurry up!! Contact us today at (800) 665-9965.
Contact our office for more detailed information about this process and your situation.
Bankruptcy is not your only option
Bankruptcy is not the only solution when you face financial struggles. Canada offers several options; one among them is the Consumer Proposal. However, that is not the only alternative.
To determine the best course of action, you should arrange an appointment with one of our accredited debt counselors. You can handle this over the phone, via video conference, or in person.
It is free, and you are under no obligation to proceed. All our meetings are confidential, and we in no way judge your actions.
Articles we prepared on Consumer Proposals in Goderich
A Change in your Financial Situation after Filing a Consumer Proposal
Financial circumstances take unexpected routes in everyone's lives. A consumer proposal helps you settle your financial problems by paying off your debts if they are at most $25,000. Yes, a consumer proposal is a formal contract under the Bankruptcy and Insolvency Act...
Are Consumer Proposals Good or Bad? Disadvantages of Consumer Proposals
A consumer proposal is the best debt relief option for Canadian residents. But, filing a consumer proposal in Canada has its consequences. But is a consumer proposal good or bad? Under what occasions does a consumer proposal work as a way out of debt? When do the...
Can a consumer proposal affect my partner?
If you and your spouse constantly struggle to manage your debt, consider discussing debt management options available to you with a Licensed Insolvency Trustee (LIT). In this article, we highlight the Consumer Proposal, one of the debt management options, and the...
Can you file twice for a consumer proposal in Waterloo?
You may have previously cleared debt by filing a consumer proposal in Waterloo and have again found yourself in another debt that requires you to file another consumer proposal to pay it off. When you find yourself needing another consumer proposal to pay off debt...
Home Equity Loans VS Consumer Proposals
Introduction You might be hoping for a way to consolidate your debt if you are struggling with credit card debt or paying multiple loans every month. A home equity loan might be the best option for you. Although there are various uses to home equity loans, homeowners...
Are you a home owner or a tenant ? Dealing with debts during COVID-19 pandemic
Introduction The COVID-19 pandemic has created turmoil in people's lives for a long time. The real estate industry is no exception. Owning or renting a home can be an expensive undertaking during this pandemic. Other than the initial down payment, when you own a...
Consumer Proposals vs Personal Bankruptcy: Which is better?
Introduction Most citizens file for personal bankruptcy or consumer proposals in Canada, making them the best insolvency options for a person facing financial troubles. Consumer Proposals and Personal Bankruptcies are under the Bankruptcy and Insolvency Act. Each of...
Are you worried about your Credit Card Debt? Stay debt-free with these eight simple rules
Many customers struggle with credit card debt. Although getting yourself out of credit card debt can be challenging, it is possible. It just takes focus, proper guidance, determination, and a plan that works with your financial situation. Here are some simple rules to...
Are you dealing with Debt problems? Solutions are here.
Debt Problems: Introduction Debt problems are not always sudden. Even so, it's a fact that financial difficulties can arise suddenly and unexpectedly, like the loss of a job or a vehicle breakdown. Debt problems can be of all sizes, from being a few hundred dollars...
Mortgage deferments are almost up: A financial wake-up call.
COVID-19 struck at the beginning of 2020, devastating millions of Canadians and reducing their income significantly. Renters struggled to pay their rent, while homeowners were worried about meeting their mortgage payments. The Canadian government made efforts to...
We can help you determine whether a consumer proposal is right for you
A Consumer Proposal is your Chance
for a Fresh Start.
Call for a free and confidential consultation at