Successfully completing your consumer proposal

Successfully Filing & Completing Your Proposal

We have discussed the basic elements of a Consumer Proposal under “Consumer Proposal Overview and Benefits”. Essential information, such as who is eligible to file a Proposal and why such an offering to your creditors might be the best choice you make to clear up your debt problems, has been discussed. Now we take a look at how best to file and complete your Proposal.

In order to initiate the process of filing a Consumer Proposal (and the ultimate goal of successfully completing that Proposal), you will need to work through the following simplified process with your Trustee:

Step 1: Contact our office toll-free by calling 310-1100 (or by clicking here to book a free, confidential consultation online at an office near you). We will make arrangements for you to attend a meeting with one of our professionals to discuss your financial situation and your options.

Step 2: At your confidential consultation, we will be legally obligated to discuss all of your options with you. We will also thoroughly review your financial paperwork. Then a recommendation will be made based on the information you have provided. Developing a successful Proposal is something our firm is extremely adept at. We have been assisting people with their financial pressures for more than 34 years and we have 30 offices and more than 120 staff available to assist you.

Step 3: If you decide a Consumer Proposal is the right option for you, we will work with you to get the required forms completed quickly. We will then file your Consumer Proposal with the Office of the Superintendent of Bankruptcy (this is now done electronically directly to the government, so filing is quick and simple). The estate/court number that the government assigns to your filing will serve to crystalize the protection from your creditors. From this point onwards, your debts are frozen, interest ceases and garnishments will be lifted.

Step 4: Our firm will then be responsible for all further communication with your creditors. You will no longer need to deal with them or with any collection agencies.

Step 5: Your creditors will have 45 days to either accept or reject the proposal. Any creditor with a proven claim may accept or object to the proposal. This can be done either prior to or at the meeting of creditors, if one is held. It can also be done within 45 days following the filing of the consumer proposal.

Step 6: A meeting of creditors will be called if one is requested by one or more creditors having at least 25% of the value of the proven claims. This request must be made within 45 days of the filing of the proposal. The OSB can also direct the trustee to call a meeting of creditors at any time within this 45-day period. A meeting of creditors will be held within 21 days after being called.

Step 7: Once your Proposal is approved by your creditors there is a standard 15-day waiting period until Court Approval. Once that is confirmed you will be notified by mail of the acceptance of your Proposal.

Step 8: You continue making your payments for the term of the Proposal.

Step 9: You Attend 2 Counseling Sessions. Each counseling session walks you through the budgeting, money management and financial rebuilding process and is extremely helpful in teaching you how to financially reorganize your life (30-60 minutes in length each).

In comparison to a bankruptcy filing, a consumer proposal is designed to be straightforward and simplified. And successfully finishing a proposal is easily within reach for most people. Finishing your Proposal on time, or early, allows you to rebuild your credit and clear up your credit rating.

How do you reach the Proposal finish line? By paying careful attention to a short list of “duties” (as outlined in the Federal Government’s legislation, known as the Bankruptcy Insolvency Act) and completing them all successfully. What are these duties? Let’s take a look:

1. Monthly Proposal Payment: Each month you will pay the Trustee an agreed-upon fee that is “locked in” once the Proposal is accepted by your creditors. No surprises.
2. Deemed Annulment: Anyone with a Consumer Proposal must heed the “three strikes rule” which is known officially as a “deemed annulment.” This occurs when you miss a total of three payments over the course of the Proposal and don’t make up the payments in a timely manner.
3. Financial Counseling Sessions: You will be required to attend two financial counseling sessions (each of which is a confidential meeting, with a licensed & OSB-registered counselor, and can run anywhere from 30 to 60 minutes).
4. Contact Information: If you move, change jobs or get a new cell or home phone number, you are required to update your records with our staff. Providing an email address to us will also ensure we can reach you when we need to.
5. Attend a Meeting of Creditors at the Trustee’s offices (if one is called). Most Consumer Proposals get the court approval stage without a Meeting of Creditors being required.

If all of the above duties are completed successfully, it’s very likely your Proposal will be, too. Once the Trustee has confirmed you have completed all of the required duties he can sign off on your Certificate of Full Performance and your Proposal will be at an end.

The next step? Rebuilding your credit using a variety of strategies, as outlined and discussed during the two counseling sessions you will have participated in during the course of your Proposal.