Meeting with the Trustee
We’ll meet with you confidentially to understand and assess your financial situation.
During the meeting we will discuss all of the options available to resolve your debts and credit issues.
Together, we will determine a payment plan that works for you over the term of the proposal.
Your income, family size and other relevant considerations will be taken into account to the consumer proposal is affordable and set up for success.
We file your Consumer Proposal and administer the voting process.
The creditors have 45 days to consider your consumer proposal, you will get relief from making further payments or collection action right away.
Once your consumer proposal is filed, this will act as protection between you and your creditors.
Interest on any loans is frozen and creditors may not contact you collect payments.
Any actions against you stop including:
- bank account freezes
- wage garnishments
- Canada Revenue Agency actions, and
- any civil claims for payments
The Creditors Get to Vote on the Proposal
Where the majority of your creditors vote to accept the proposal:
- the proposal will be accepted
- is legally binding on all parties,
- including creditors who may not have voted to accept your proposal.
Consumer Proposals have a high success rate and are almost always accepted by creditors, as they will provide a better return than if you opted to declare personal bankruptcy instead.
You comply with the terms of your Consumer Proposal, as accepted by your creditors and make the monthly payments to the trustee.
The trustee distributes the money to the creditors
You make the payment to the trustee and then the trustee distribute the payment to the creditors each month.
Consumer Proposal can be off in full at any time, without penalty.
Two financial counselling sessions
You must attend two financial counselling sessions with the trustee. The counselling will focus on:
- credit improvement tips
- budgeting and spending habits
- money and debt management strategies
The counselling sessions are to help you learn to manage debt and credit for the future.
Achieving full and final settlement of your debts
After your last payment is made, the trustee will make a final distribution to your creditors and issue you a Certificate of Full Performance.
The unpaid balance of the debts included in the proposal will be forgiven by the creditors.
You are now debt-free and have achieved a financial fresh start!
A Consumer Proposal reduces and pays off debt and can be a successful debt management option for you – without resorting to personal bankruptcy. Consumer Proposals are the best alternative to personal bankruptcy for most people in Canada.
