Consumer Proposal – 3 Rules in 3 Minutes

There are 3 rules to having the greatest success in filing a proposal

  1. You must offer more than your creditors would get in a bankruptcy. Think about it this way. If in a bankruptcy your creditors would get 30 cents on the dollar, why would your creditors agree to a proposal of 20 cents on the dollar. Creditors generally want about one-third of their money back.
  2. You must be able to make the payment each month. You might have the greatest intention, but if you can’t show that you can afford it, your creditors are less likely to agree to it. Try making a household budget so you can see how much money each month to pay into a proposal.
  3. You must file a consumer proposal with a consumer proposal administrator licensed by the federal government. A debt consultant cannot do it for you.

Follow these rules, and its likely your proposal will succeed.

 

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