Your consumer proposal will be in default if:
- You are required to make monthly payments and the sum of three of the monthly payments under the consumer proposal are missed, or
- Your required payments (if they are not monthly) are in arrears for more than three months.
The consumer proposal will be deemed to be annulled and creditors will again be able to implement collection activities to recover their debts, together with interest from the date of filing the proposal (not the annulment date).
If you were bankrupt at the time of filing the consumer proposal, you automatically again become bankrupt.
In circumstances where your proposal is deemed annulled and you were not bankrupt, it may be possible for your proposal to be revived if you make up all the missed payments.
The administrator will notify the creditors within 30 days of annulment, informing them that the consumer proposal will be automatically revived after 60 days from the annulment date unless one of them objects.
If no notice of objection is filed the consumer proposal is automatically revived. If there is an objection, there is no automatic revival.
It is possible to make an application to court if there is an objection to a revival.