Frequently Asked Questions
- How Does A Consumer Proposal Work?
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<p>A Consumer Proposal is a written offer by a person to his or her creditors. The offer is primarily aimed at unsecured creditors but will also outline how you intend to deal with secured creditors. The offer is designed to either reduce the monthly payments to creditors or to reduce the total amount owing.</p>
<p>Our Trustee can prepare a Proposal for you.</p>
<p>The Proposal is registered with a department of the Federal Government responsible for managing the insolvency process in Canada. Once it is registered you are protected from creditors taking action against you until the offer is considered by the creditors.</p>
<p>The creditors are presented with a copy of the proposal, along with a report and some other relevant financial information. They may then vote upon the offer. At the end of a 45 day period any votes received are counted.</p>
<p>Provided that a majority of the participating creditors are in favor, your Proposal succeeds. In some cases a Meeting of Creditors may be necessary to respond to any creditor inquiries but these are not common.</p>
<p>Upon the acceptance of the proposal it will be binding upon you and all the creditors.</p>
<p>Upon completion of the terms of the proposal you will be issued with a "Certificate of Full Performance", acknowledging your compliance.</p>
<p>If you fail to meet the terms of your Proposal it will lead to its default, therefore allowing your creditors to once again take action against you.</p>
<p>If you are temporarily unable to meet your commitments in the Proposal the Trustee will have a limited time to seek the creditors' permission for a delay. It is however imperative that you advise the Trustee of the problem as soon as possible.</p>
DISCLAIMER
All of the information on this website is provided as general information to those seeking general answers to their questions.
This information should not be construed as professional advice.
Every insolvency situation is different and the outcome of each will very depending on its unique circumstances.
Do not rely on this information, or take any steps which are based upon this information without first seeking professional advice.
To obtain specific professional advice a questionnaire must be completed and a personal evaluation conducted by our Trustee.