It is extremely rare that creditors do not accept a consumer proposal. Creditors know that if a consumer proposal fails, chances are the debtor will file a personal bankruptcy, which they know will produce less recovery than a consumer proposal.
In the rare case that your creditors don’t accept your consumer proposal as filed, we will help you negotiate further with your creditors. It may be possible to convince creditors to reconsider their position and accept the original proposal or you may have to amend the terms (increase payments) of the proposal to gain creditors acceptance. When creditors vote against a consumer proposal they usually make a counter-offer. If after negotiating you are unable to reach an agreement, then the proposal would fail and you would have the option of filing personal bankruptcy.
If you’re thinking about making a consumer proposal, contact one of our SW Ontario offices today. Your initial no-obligation consultation is free and we have flexible hours to meet your needs.
