Help With a Consumer Proposal
The Consumer Proposal
Is A Consumer Proposal Right For You?
Consumer proposals aren’t appropriate for everyone. If you owe less than $1,000 or more than $250,000, you are likely not eligible for a consumer proposal. However, there are certain debt exclusions, such as mortgage debt, that don’t count towards these thresholds. Speaking with an experienced licensed insolvency trustee can help you better understand if a consumer proposal fits your needs.
What Is A Consumer Proposal?
A licensed insolvency trustee will examine your financial situation and offer your creditors your proposal. This proposal may request the creditors to extend how much time you have to pay off the debt or offer them only a certain percentage of the debts owed. You may also request to reduce interest payments. Sometimes a proposal will request all of these actions be taken.
All payments to your creditors will occur through the licensed insolvency trustee, who will act as an intermediary. The trustee will then use this money to pay off what you owe.
Other Benefits of A Consumer Proposal
Stop Wage Garnishment & Lawsuits
Creditors Are Under No Obligation To Accept Your Terms
It’s important to realize that creditors can reject or accept your proposal, and they have no legal obligation to negotiate the terms of your debt. However, they often have an incentive to work with you to recoup the money they are owed. Creditors have 45 days to accept or reject your proposal, otherwise, it will automatically be accepted.
If your proposal is rejected, you have the right to resubmit a new proposal. If this second proposal is rejected, you may have to file for bankruptcy if you cannot reach an agreement with your creditors.
Contact our office for more detailed information about this process and your situation.
Your Obligations Under The Proposal
Walk You Through Each Step of the Process
A Consumer Proposal is your Chance
for a Fresh Start.