Can I Include Student Loans in A Consumer Proposal in Canada?



Consumer Proposals

Yes!  But hold on, there’s a lot of different things you need to know. First, you should know that a consumer proposal is an option under the Bankruptcy & Insolvency Act  where, basically, you can offer to make a deal with your creditors. They can be really helpful ways to pay back part of the debt and get a fresh start, with the balance waived.  The reason I point out a consumer proposal is a proceeding…


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Can I Operate A Business Or Be A Director If I File A Consumer Proposal?



Consumer Proposals

Consumer proposals carry many potential advantages over bankruptcy, not the least of which is the ability to hold positions of trust while dealing with your debts. I meet with a lot of people who are self-employed – for the most part, they are involved in roofing, floor installation and trucking. In some cases they are involved in insurance or mutual fund sales. Most of these self-employed folks are set up as sole proprietors, rather than…


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Will There Be a Meeting of Creditors During My Proposal?



Consumer Proposals

When talking with clients, I often get asked, “Do I have to meet with my creditors?”; coupled with a look of stress or fear. Let me explain the basics and then provide you with some practical, real life scenarios. The Basics The Bankruptcy and Insolvency Act tells us that the Administrator of the proposal (that’s your trustee) is to call a meeting of creditors if: directed to do so by the Official Receiver (the government)…


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Does the Government Have to Approve My Consumer Proposal?



Consumer Proposals

Consumer Proposals are the only debt settlement programs regulated by the federal government. You may know that your creditors will vote on your consumer proposal and if more than 50% vote yes your proposal terms will be accepted. But what role, if any, does the government play in approving or processing consumer proposals? Government Oversite through the OSB Any bankruptcy or consumer proposal has to be filed with the Office of the Superintendent of Bankruptcy (OSB) for it…


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25 Things You Must Know About Consumer Proposals



Consumer Proposals

I’m finding that I meet with more people every day who have heard of consumer proposals, and are interested in them as an alternative to bankruptcy, but it seems many are not completely sure about what they are or how consumer proposals work. Here are 25 important facts about proposals: A consumer proposal is a legal arrangement, under the Bankruptcy and Insolvency Act, that can be made between you and your creditors. It will help reduce your debt load and improve your…


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A Consumer Proposal Case Study in London



Consumer Proposals

I’ve recently had the great pleasure of helping someone avoid what could have been a very difficult bankruptcy, and I wanted to share some of what happened.  I’m changing a lot of detail here for this person’s privacy, but the basic story is what’s important. Several months ago I had my first meeting with this person – he was convinced coming in that he would be filing bankruptcy (in fact, had received advice from his accountant to…


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Consumer Proposal Success Story in London



Consumer Proposals

So often, we find ourselve s (at least in my office!) talking about how great consumer proposals are, how much they help folks save their homes or reduce their debt costs (both, really) and how they offer a good alternative to filing bankruptcy. Yesterday I had the pleasure of meeting with a client who was just completing their proposal with us. About two years ago, this client had come in with significant stress – a…


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I Filed Bankruptcy once Before, Should I Think about a Consumer Proposal Now?



Consumer Proposals

If you’ve had financial difficulty in the past, and filed bankruptcy, it may not be a great option to file bankruptcy again. We’ll explain how the costs of a repeat bankruptcy may mean a consumer proposal may be the wiser choice. A second bankruptcy is a more difficult and expensive process.  The fees in a second bankruptcy alone can amount to several thousand dollars, and you will be in the process for at least two,…


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Will my Credit Rating be Better in a Consumer Proposal?



Consumer Proposals

The answer is:  sort of.  This is a bit of a sticky point.  In a consumer proposal you are repaying a portion of your debt, voluntarily, and this should have some positive impact on your score, versus a bankruptcy. In practice, in all honesty, it’s not a huge difference. If you file a personal bankruptcy, it should remain on your credit report as an R9 (worst possible rating) for seven years after your discharge.  For…


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Can I Keep my ‘Stuff’ if I File a Consumer Proposal?



Consumer Proposals

The biggest benefit you will read over and over about a consumer proposal is that you get to ‘keep your assets‘. Just exactly what does this mean? In the personal bankruptcy process, many assets are exempt from seizure, but some are not.  Part of the purpose of filing a consumer proposal in some cases is to protect assets that otherwise might be at risk in a bankruptcy. Some examples of items that are not at…


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