Filing a Consumer Proposal in Canada
What is a Consumer Proposal?
It’s a proposal made by debtors, facilitated by bankruptcy trustees, to modify their payments to creditors. Such a proposal must be completed
within five years.
LCTaylor: 1.800.463.8371 [email protected]
Most Frequently Asked Questions About Consumer
Proposals in Canada
LCTaylor: 1.800.463.8371 [email protected]
Meeting with a licensed bankruptcy trustee is the first step.
Your trustee will conduct a complete review of your finances to use as the
basis for submitting a proposal to your creditors.
1. What is the first step for filing a consumer proposal?
LCTaylor: 1.800.463.8371 [email protected]
In order to file for a consumer proposal you must meet the following criteria:
-Be insolvent-Have total debt less than $250,000 (excluding your home mortgage)-Have a steady source of income
Am I eligible for a consumer proposal?
LCTaylor: 1.800.463.8371 [email protected]
Do my creditors have to accept my proposal?
Creditors do not have to accept your proposal but usually will if they stand to
receive more than if you file for bankruptcy.
If a majority of your creditors vote to accept the proposal, all unsecured creditors in the
proposal become bound by it.
If a proposal is rejected, you can meet with your creditors, determine why it was
rejected and resubmit it.
LCTaylor: 1.800.463.8371 [email protected]
What are the terms of a consumer proposal?
• The terms of a proposal are based on your personal finances and your ability to pay.
• You will need to make monthly payments as outlined in the proposal.
• Attendance at two financial counselling sessions is required to complete your proposal.
LCTaylor: 1.800.463.8371 [email protected]
When will my consumer proposal be complete?
A consumer proposal needs to be completed over a pre-determined
amount of time of no more than five years.
If you meet the criteria as outlined in your proposal terms, you will complete
your agreement.
Note: Section 178 debts will survive a proposal.
LCTaylor: 1.800.463.8371 [email protected]
Why should I file a consumer proposal?
• Consumer Proposals provide legal protection from your creditors
• You can retain your assets
• You can pay back a reduced amount of your overall debt
LCTaylor: 1.800.463.8371 [email protected]
For more information about filing a consumer proposal in Manitoba or Ontario
visit LCTaylor.com
Trustees are available to answer your questions at ourWinnipeg and Kenora locations.
LCTaylor: 1.800.463.8371 [email protected]