4 Steps to a Home Run Consumer Proposal



If you’re considering a consumer proposal as a solution to an overwhelming debt problem, you want to make it a home run. You undoubtedly want the proposal to be accepted by your creditors, and to position yourself for a sound financial future. Here are my four key steps to a successful consumer proposal: 1. The Preparation Before all else, meet with a Licensed Insolvency Trustee for help. A Licensed Insolvency Trustee is the only person…


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How Long Does A Consumer Proposal Last?



Consumer Proposals

Because a consumer proposal is a negotiated debt settlement, how much you pay and for how long depend upon the agreement, or proposal, you put to your creditors. There are some conditions however. The maximum period of time that you can offer to pay a consumer proposal over is five years. However, there is no minimum time frame.  If you have the ability to offer to repay a portion of your debt as a one-time…


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Filing A Lump Sum Consumer Proposal Can Be A Good Option



Consumer Proposals

Consumer proposals can be offered in many ways.  The conventional way is to offer payments over a period of time, up to five years.  However, there’s little to restrict a bit of creativity in a consumer proposal. In fact, proposals to creditors can be offered in as little as one payment. Filing a consumer proposal as a lump sum can be a good option for someone who has access to some cash but not enough to…


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My Consumer Proposal Was Annulled: Now What?



Consumer Proposals

  Here’s the bad news: if your consumer proposal is annulled, you’ve lost any protection from your creditors.  Their rights are re-instated and they can pursue you for your debts again. Here’s the good news: other than doing nothing, you have five options to still get relief from your debts and a fresh start. Don’t Panic.  You Still Have Options. 1. Revive the Proposal – If you can meet with your trustee within 30 days of the proposal…


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How the Voting Process Works on a Consumer Proposal



Consumer Proposals

If you’re struggling to repay debts, you can ask creditors to reduce the amount you have to repay on your debt by offering a Consumer Proposal.  A consumer proposal is legally binding between you and your creditors if they accept the offer made. The creditors would generally consider accepting this if what you’re offering to them provides a greater benefit to them than they’d receive if you were to file a bankruptcy instead. As much…


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How Long do Consumer Proposals Last?



Consumer Proposals

The maximum time you can offer a Consumer Proposal over is 5 years. This does not mean every proposal is 5 years as there is no minimum time set to make payments over.  It can be shorter if you wish. Here in my Brantford office, we’ve done some consumer proposals where the terms were to only make one payment! One of the critical points to having a consumer proposal accepted is that the proposal offer…


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10 Benefits of Filing a Consumer Proposal



Consumer Proposals

If you’re looking into options you may have to help you with an overwhelming debt load, here are 10 benefits to a Consumer Proposal that may help you in your decision when considering all options. Debt Relief – Your unsecured debts such as credit cards, credit lines, loans, overdrafts, taxes are all included in a Consumer Proposal.  Some exceptions apply to some unsecured debts such as support obligations, debts resulting from fraudulent activity, but for…


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Will a Consumer Proposal Affect my Mortgage?



Consumer Proposals

Consumer Proposals are an attractive option for dealing with debts to home owners as unlike a bankruptcy, you get to keep control of your house if you’ve built up some equity.  In a Consumer Proposal you don’t “assign” control of your assets to the trustee like you would in an assignment in bankruptcy. Protecting an investment such as a home is important to most people so it is understandable that this question would be asked…


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Myths about Consumer Proposals



I’ve seen and heard recently some negative comments with respect to consumer proposals, so I thought I’d take some time today to answer some of these myths about consumer proposals.  Here are some of the comments I’ve come across or various websites and radio interviews recently: “A consumer proposal lasts 5 years” Not true.  A consumer proposal can last up to a maximum of 5 years.  Proposals can range from 1 month to 60 months and…


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Infographic – Consumer Proposal vs Bankruptcy



Consumer Proposals

One of the most common questions we receive is “Am I better off filing a Bankruptcy or a Consumer Proposal? The chart below will help you to see some of the key differences in each scenario as a bankruptcy and consumer proposal go head to head on some of the most frequently asked questions: The table above is provided to give you a guide – the specifics of your situation should be discussed with a…


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