Once your consumer proposal has started, if you miss three payments the consumer proposal is annulled. If your consumer proposal is deemed annulled then your proposal ends and you are no longer protected from your creditors
There are a few options that you may pursue if your consumer proposal is deemed annulled, but to figure out which option is best for you, you will need to speak with your trustee.
The first option when a consumer proposal is annulled is your trustee can send a notification of revival within 30 days of the default. But for your trustee to do this you must satisfy them that this was a temporary glitch and you have every ability to meet the terms as required.
If your trustee agrees to allow you to attempt to revive the proposal, your creditors are notified that the proposal will automatically be revived unless they raise an objection with 60 days. If they don’t object, you continue on with the original terms.
If your proposal was annulled because you simply can no longer make the payments as your financial circumstances have changed for the worse, it might be time to discuss filing personal bankruptcy. A bankruptcy would re-instate the creditor protection that you lost when your proposal was annulled.
These two options are fairly popular after a consumer proposal is annulled but if they don’t work for you, your trustee may be able to come up with another solution that better suits your needs. Contact us today for a free, no-obligation consultation to discuss your next steps. We’re here to help!
