Filing

Your first meeting with the trustee is a discussion about your loans for unsecured credit including:

• who do you owe money to:
  • credit cards
  • student loans
  • taxes owed
  • utility bills
• what is the current balance
• what are your sources of income

Many times our clients find it easier to bring in the documents or bank statements for each debt so we have accurate amounts.

During this discussion the trustee will be looking to create a repayment and financial plan based upon:

• your income,
• what you own and
• who you owe money to

The trustee is looking to determine how much to offer your creditors and how much your monthly payments should be.

★★★★★ My husband was laid off, but our bills kept coming. We saved $18,000 and will be debt free in four years, Thank you Susan N. Oshawa

The trustee takes the information about your debts. This information will include:

• your current finances
• how much you’re able to pay on the debts
• how long the proposal will last
• the monthly payments you’ll make

The trustee completes all of the paperwork and submits the proposal.

The proposal is filed with the office of the Superintendent of Bankruptcy electronically by the trustee.

Once the application is accepted a stay of proceedings is issued.

A stay of proceedings means that any creditors must:

• deal only with the trustee
• cannot contact you for collection
• any wage garnishments are stopped

Once the proposal is filed the trustee sends notice to the creditors.

The creditors may ask for a meeting to discuss the terms of your proposals or to ask any questions they have.

This does not always happen but if it does the trustee will hold the meeting and guide you through the process.

The creditors have 45 days to decide whether to accept the proposal or ask for a creditors meeting. If no meeting is requested after the 45 days has past your proposal is deemed to be accepted.

Should any creditors contact you, they should be directed to speak to the trustee.

Where a meeting has been requested the creditors have an opportunity to:

• ask you questions
• reject the proposal, or
• negotiate for a better offer

The trustee will chair the meeting, report to the creditors on your affairs and explain why the trustee feels the proposal deserves their support.

Where the creditors vote no, your options are to:

• renegotiate the proposal
• withdraw the proposal
• file for bankruptcy

In a renegotiation the creditors may ask for higher payments or reduce the term of the payments, e.g from 5 years to 4 years.

Where a meeting is not requested the proposal is deemed to be accepted after 45 days.

★★★★★ YanchDey did all the paperwork and dealt with our creditors.  The garnishee was stopped and we can sleep at night, we now have a fresh start. Many thanks, Debbie S. Ajax

Where the proposal is accepted you would start making the monthly payments on your proposal.

You are required to attend two credit counselling meetings with the trustee and an online program. The counselling is to help you going forward dealing with credit.

After the proposal has been completed you will receive a Certificate of Full Performance.

The Certificate of Full Performance shows that the terms of the proposal have been completed and that the debt(s) have been cleared.

After filing and completing the consumer proposal Equifax removes it from your credit report 3 years after you’ve completed the payments you agreed to under the proposal.

TransUnion removes a proposal from your credit report either:

• 3 years after you’ve paid off the amount owing in the proposal, or
• 6 years after you sign the proposal (whichever is sooner)

While in the proposal you may find that you can obtain a secured credit card.  We suggest that you look for a credit card with a maximum credit limit of $500.

The credit card has to be paid off each month completely.

We also suggest that clients use this time to try to build up savings, as they do not have the high loan payments.