When people come to me to discuss bankruptcy, they often don’t realize that a consumer proposal may also be an option. If a consumer proposal is right for you, these are the steps that you will need to take in order to complete your proposal.

Step 1: Meet with a licensed insolvency trustee:

  • Review your situation and discuss options.
  • Confirm that filing a consumer proposal is the right option for you.
  • Determine the appropriate proposal terms based on your individual situation and budget.

Step 2: File your consumer proposal:

  • Complete and sign proposal documents with the trustee.
  • Register your proposal with the Office of the Superintendent of Bankruptcy.
  • Send notice of your proposal to your creditors.

Step 3: Get your proposal approved:

  • Creditors have 45 days from the date of filing to vote on your proposal.
  • If the majority (51%) of creditors by dollar value ($1 = 1 vote) vote in favour of the proposal it is approved as filed.
  • If creditors do not vote within the 45-day voting period, they are deemed to have accepted the proposal and the proposal is approved as filed.
  • If the majority (51%) of creditors by dollar value ($1 = 1 vote) vote against your proposal it does not mean that your proposal is rejected. It simply means that we need to negotiate with the creditors further, and, when necessary, amend the terms of the proposal to reach a mutually acceptable settlement.
  • Deemed Court approval occurs 15 days after creditor approval has been obtained.

Step 4: Complete your consumer proposal:

  • Make all required payments.
  • When completed, a “Certificate of Full Performance” is issued by the trustee.
  • Completion of the proposal discharges you of any future obligation to the creditors that were included in your proposal.

If you have any questions, contact one of our licensed insolvency trustees today!

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