André Gabbay et Associés Inc. is a bankruptcy firm in Montreal. They help those completing a consumers proposal or facing other financial difficulties. They are located at 625 Boulevard René-Lévesque Ouest Montréal, QC H3B 1R2‎ (514) 398-9850.

1. Steps to Take When Filing a
Consumer Proposal

2. When financial problems start to pile up to the point that
bankruptcy seems like the only real option, the consumers
proposal is often what ends up saving the day.
Most people cringe at the thought of having to file for bankruptcy,
but when you just can’t keep up and creditors are calling on a daily
basis, the thought gets a lot less uncomfortable. With a consumers
proposal, you can avoid bankruptcy altogether, while getting your
financial life back in order.

3. What Is a Consumer Proposal?
A consumer proposal is an official contract that’s governed by the
Bankruptcy and Insolvency Act. The contracted is created and
introduced by a bankruptcy trustee on your behalf.
Essentially, the trustee negotiates with your creditors for you to
repay a partial amount of the total of your unsecured debt. Once
the contract is put in place, your creditors will no longer contact
you, and you will make payments to the trustee.
The main reason a creditor would agree to this arrangement is so
you won’t file for bankruptcy, where they would get none of their
money back.

4. Do I Qualify?
Even though it probably seems like an attractive offer, not
everyone qualifies for a consumer proposal. Here’s what you
need:
• You must be unable to make regular debt payments
• You must be an individual and not a business
• You must owe less than $250,000 not including your primary
mortgage
• You must have a reliable source of income

5. Find a Bankruptcy Trustee
The first step in the process is to find yourself a licensed
bankruptcy trustee. This isn’t a process you can carry out yourself,
and the trustee must be licensed by the Superintendent of
Bankruptcy.
You can ask around among friend and family, or conduct an online
search for a bankruptcy trustee in your area. Once you find a
trustee, he or she will set up a consultation to go over your financial
situation.

6. Finding a Trustee cont…
The trustee will ask you a series of questions, some of which will
seem personal, to asses the situation. Once the meeting is over,
you will know if a consumers proposal is the right option or not.
If it is, the bankruptcy trustee will come up with a plan and then
contact your creditors to negotiate settlements.

7. Wait for Your Creditors
Once the trustee files the proposal, you can only wait for your
creditors to make a decision on the offer. If you’re used to being
proactive this step may be a little frustrating, but it can take up to
45 days to hear back.
For the proposal to be accepted, creditors representing more than
50% of your overall debt must approve of the deal. If the proposal
is accepted, you’ll start making payments. If it’s rejected, your
trustee might will likely suggest alternate terms to try and get a
‘yes’ vote.

8. Start Making Payments
The next step in the consumer proposal process is to start making
payments. You will follow whatever payment schedule your trustee
set up for you, and make all the payments directly to the trustee
each month.
After you have fulfilled your obligations to all of the creditors, you’ll
be marked down as ‘paid in full’ and all of your unsecured debt will
be gone.

9. Benefits of a Consumer Proposal
Most clients notice quite a few benefits to filing a consumers
proposal, including:
• You will never owe more than it states in the agreement, even if
your income increases
• Your assets are never at risk of being taken, like with a
bankruptcy
• Interest on your debts stops accumulating
• No more calls form collections or creditors

10. References
André Gabbay et Associés Inc. is a bankruptcy firm in
Montreal. They help those completing a consumers
proposal or facing other financial difficulties. They are
located at 625 Boulevard René-Lévesque Ouest
Montréal, QC H3B 1R2 (514) 398-9850.