What Is A Consumer Proposal? A consumer proposal offers an alternative to bankruptcy. For example, you may ask the creditors to reduce the amounts owing to them or request more time to pay the amounts due. A consumer proposal must be made to all preferred and unsecured creditors, but does not affect the rights of secured creditors. The terms of the proposal must be completed in five years and must offer the creditors at least what they would be paid in a bankruptcy. Consumer proposals are aimed at those who do not have many debts or complicated financial affairs. How Do My Creditors Decide Whether To Accept My Proposal? Once you file a proposal, the Trustee will send a notice to all of your creditors affected by the proposal. If 25% of your creditors request a meeting, and / or reject the proposal, a meeting of your creditors will be held. If a meeting is held your creditors will vote as to whether to accept your proposal. If no meeting is held, your proposal is automatically deemed accepted. What Are My Options?
If your problems are so serious that debt consolidation or other remedies are not practical, then a consumer proposal or personal bankruptcy may be an alternative. |
