• You do not have to file for Bankruptcy.
• You can keep your property while making small payments to your creditors
• No more harassing phone calls.
• Stops wage garnishment.

Our experienced counselors will assess your financial situation and help you determine if filing for a consumer proposal is the best alternative for you.

No one is usually subjected to a loss/repossession of their assets when they file for a proposal. Once you continue to make your usual secured debt payments such as mortgage and car etc.

Once your consumer proposal is completed, you do not have to worry about paying any more unsecured debts. Consumer proposal offers less than the original amount you owe it is approximately 25% of your total debt.

If you kept your mortgage payments up to date, as long as you can prove that you will be able to make mortgage payments in a timely manner in the future, and meet your lending institution’s requirements, you should be able to qualify for a renewal.

Everyone has different and unique situations; for this reason we advise that you speak to one of our counselor regarding this.

If you miss three months of your payments on your Proposal and do not file an Amendment to your Proposal, your Proposal will no longer be a legally binding agreement and your creditors will be free to take legal action against you for the full amount of the debt you owe them. You may have to file for Bankruptcy if you default on your Proposal.

Consumer proposals usually last for up to five years.

This would depend on the amount of the debt. If it proves to be nominal, your proposal may continue as offered. However, if the amount of the debt you forgot is substantial, you may be required to increase your proposal payment. Your counsellors would make recommendations for the necessary actions.

If a majority of creditors vote to accept the proposal (each creditor has one vote for each dollar of his or her proven claim) and the proposal is subsequently approved by the Court, it becomes binding on the debtor and his or her creditors. You would then be eligible to receive interim dividends according to the terms of the proposal.

If the proposal is accepted, the Office of the Superintendent of Bankruptcy (OSB) or any other interested party has 15 days to ask the trustee to apply to the Court to have the proposal reviewed. The court may reject the proposal if it finds that the terms of the proposal are not reasonable or fair to the debtor or the creditors. However, if no request is made within 15 days, the proposal is considered approved.

The debtor is no longer protected if the proposal is rejected by the creditors or the Court; or annulled by the Court or deemed annulled because the debtor failed to comply with the terms of the proposal. This means that, as a creditor, you would then be able to take legal steps to recover your debts.

The procedure begins when a debtor seeks the help of a Counsellor who will then meet up with a trustee. The counsellor will prepare the debtor with his or her financial situation and the cause of the insolvency, and give options for the debtor on what type of proposal to make. The trustee will then file the required documents with the Office of the Superintendent of Bankruptcy (OSB).

Within 10 days of filing, the trustee must send the OSB which is a report containing his or her opinion of the fairness of the proposal and the ability of the debtor to follow its terms. The report must also list the debtor's assets, debts and creditors. At the same time, the trustee must send copies of the proposal and reports to each creditor, asking the creditors to accept or reject the proposal.

Creditors are then given 45 days to accept the proposal or reject it by sending a note to the trustee or by voting against it at the meeting of creditors. (If they do not respond, they are considered to have accepted the proposal.)

Your unsecured creditors will have to stop all of their Collection actions against you, including legal actions and Garnishees on your wages or bank accounts.

Wages are not affected by bankruptcy. However, you will be required to fill out an Income and Expense Form listing any income you may have. If your income exceeds certain standards established by the Office of the Superintendent of Bankruptcy (OSB), you will be expected to pay a portion of the surplus into the bankruptcy estate through the trustee.

No, not necessarily. Depending on the amount of the equity in your home, you may be able to pay the value of the equity to your creditors. As long as you are current with your mortgage payments, you are usually able to maintain the payment to the secured lender and protect your home. You should discuss this further with your counselor.