LCTaylor: Filing a Consumer Proposal in Canada

382 views

Published on

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.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
382
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

LCTaylor: Filing a Consumer Proposal in Canada

  1. 1. Filing a Consumer Proposal in Canada
  2. 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. 3. Most Frequently Asked Questions About Consumer Proposals in CanadaLCTaylor: 1.800.463.8371 lct@lctaylor.net
  4. 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. 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. 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. 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. 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. 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. 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

×