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WHAT IS A CONSUMER PROPOSAL? Free Consultation... No Obligation
A Consumer Proposal is an agreement to pay back your creditors when you find that you are unable to pay your debts in the normal course. The payment schedule, which is created in consultation with a Trustee is based on your income, living expenses and family responsibilities.
Who may make a consumer proposal?
If your debts are less than $250,000, you may make a Consumer Proposal. A home mortgage is not included in the total amount of your debt for purposes of determining the $250,000. The amount for a couple would be $500,000.
How can a proposal help me?
A Proposal can: - give you additional time you need to pay your debts;
- reduce the total amount you must pay to your creditors;
- stop further interest from being added to your debts.
Can my proposal be refused?
Your creditors are likely to accept your Proposal if it is reasonable. If a majority of your creditors or the Court do not feel that your Proposal is reasonable, they may refuse it and you will have to consider other options.
Could filing a proposal cause me to lose my job?
The Bankruptcy and Insolvency Act specifically forbids an employer from dismissing, suspending or laying off an employee solely because the employee has filed a Proposal.
Can my landlord evict me or terminate my lease?
A landlord cannot evict or terminate your lease for rent owing when you file a Proposal.
Can my utilities be disconnected?
Your fuel, water, electricity and telephone services cannot be disconnected for amounts that you owe at the time you file your Proposal. However, the company providing the services is not obliged to give you credit in the future and may require that you provide a cash deposit.
Can I keep my personal possessions?
Your property does not belong to your creditors and would not be turned over to the Trustee. However, if you have pledged a specific asset such as a car, you may have to continue the usual payments or you may lose the asset.
When will creditors stop pressuring me?
Immediately. Your unsecured creditors (those to whom you have not pledged specific assets) can do nothing to collect their accounts after you have filed a Proposal. If your wages are presently being garnished, the filing of the Proposal will, in most cases, stop the garnishee.
How will my creditors know that I have filed a proposal?
Shortly after you have signed the proposal documents, the Trustee will inform your creditors that you have filed a Proposal and send them the details of the Proposal. If creditors contact you between the time you sign the documents and the time they are notified of the proposal, you should refer them to the Trustee.
Will the trustee assist me in meeting the terms of the proposal?
The Trustee, through financial counselling will help you better manage your money so that you can meet the terms of the consumer proposal. Your new skills will also help you in future money management.
What happens if I can't make payments after I start the proposal?
Your Proposal can be changed with the approval of the creditors. If you stop making payments and do not amend the Proposal, the Proposal is ended and your creditors can continue their proceedings against you. As a result, you will lose the protection that the Proposal gave you against the actions of your creditors.
What does a proposal cost?
The fees paid to the Trustee are included in the payments made by you under the terms of the Proposal. The fee is set by the Bankruptcy and Insolvency Act Rules and includes a preparation fee plus a percentage of the funds paid to your creditors.
Is a proposal my only option?
NO. Depending on your particular situation other alternatives may be more appropriate.
These options include: - consumer bankruptcy;
- financial counselling;
- a debt consolidation loan.
All these options will be discussed in detail when you meet the Trustee.
Where can I get more information about proposals?
To obtain more information you should consult with one of our qualified counsellors. We will assist you in the preparation of the final documentation.
Call Doyle Salewski today 613-237-5555 email info@doylegroup.ca
This is your opportunity to eliminate your excessive debt. Call us at any of our offices in Canada. Ottawa, Gatineau, Toronto, Arnprior, Barry’s Bay, Brampton, Brockville, Burlington, Carleton Place, Cornwall, Hamilton, London, Pembroke, Perth, Renfrew, Smiths Falls, Sudbury, Windsor.
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