LCTaylor: Filing a Consumer Proposal in Canada

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Am I eligible for a consumer proposal? Do my creditors have to accept a consumer proposal? LCTaylor provides answers to the most frequently asked questions about consumer proposals in Canada.

Am I eligible for a consumer proposal? Do my creditors have to accept a consumer proposal? LCTaylor provides answers to the most frequently asked questions about consumer proposals in Canada.

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  • 1. Filing a Consumer Proposal in Canada
  • 2. 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 lct@lctaylor.net
  • 3. Most Frequently Asked Questions About Consumer Proposals in CanadaLCTaylor: 1.800.463.8371 lct@lctaylor.net
  • 4. 1. What is the first step for filing a consumer proposal? 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.LCTaylor: 1.800.463.8371 lct@lctaylor.net
  • 5. Am I eligible for a consumer proposal? 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 incomeLCTaylor: 1.800.463.8371 lct@lctaylor.net
  • 6. 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 lct@lctaylor.net
  • 7. 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 lct@lctaylor.net
  • 8. 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 lct@lctaylor.net
  • 9. 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 debtLCTaylor: 1.800.463.8371 lct@lctaylor.net
  • 10. For more information about filing a consumer proposal in Manitoba or Ontario visit LCTaylor.com Trustees are available to answer your questions at our Winnipeg and Kenora locations.LCTaylor: 1.800.463.8371 lct@lctaylor.net