How Long Does A Consumer Proposal Last?



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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Consumer Proposal Annulment A Law, Not A Policy



A consumer proposal is a legally binding agreement between you and your creditors to settle your debt. Typically, the payments are scheduled as a monthly payment over a certain period of months. But what happens if you stop making payments? Your consumer proposal is annulled. The Bankruptcy and Insolvency Act is quite clear on what happens when payments are missed.  Section  66.31(1) states: …A consumer proposal is deemed to be annulled on (a) in the…


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Filing A Lump Sum Consumer Proposal Can Be A Good Option



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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When Is A Consumer Proposal Appropriate?



  When someone meets with a professional to get advice on which option is best to deal with their specific financial difficulties, it can become evident very quickly when filing bankruptcy is not the best choice.  At times, a consumer proposal is the more appropriate alternative.  To better understand when a consumer proposal might be a good debt solution for you, read the categories below to see if they apply to your personal situation. The High Income Earner…


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My Consumer Proposal Was Annulled: Now What?



  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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Common Questions about Consumer Proposals in Canada



Consumer Proposal in Canada: A Quick Overview When filing a consumer proposal in Canada, you are offering a legal contract to your creditors to repay a portion of your debt over a period of up to 5 years. To get started, your consumer proposal administrator will gather information from you at the initial consultation meeting regarding your debts, as well as any assets that you have and what they are worth. These values are typically…


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25 Things You Must Know About 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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Consumer Proposals Are Not A One Size Fits All Solution



I have always known that when we meet with someone, we go into the process believing that a consumer proposal is unique to the individual. To emphasize the point, I decided to review 18 consumer proposals that have been filed in our Windsor & Leamington offices in a 60 day period to see just how different each scenario really is. It was an interesting exercise in which I confirmed that each proposal was as unique as…


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Joint Consumer Proposals – When It’s A Good Idea



Most consumer proposals are filed by one person, but it is possible to file a joint consumer proposal. We will start with the assumption that you are eligible to file a consumer proposal and that this is the best debt relief solution. Whether or not you should file a consumer proposal jointly, or individually, depends on the circumstances. Joint Proposals are for Joint Debts A joint proposal can be filed where two people have debts that…


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Should You Get A Loan To Pay Out Your Consumer Proposal?



It may be hard to believe, but there are companies that offer to loan you money to pay out your consumer proposal.  The rationale is simple: the sooner you pay off your consumer proposal, the sooner you can begin to rebuild your credit. There is some truth in that statement.  A consumer proposal remains on your Equifax credit report for three years after you finish the payments, so by paying it out early you get…


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