If you have a large amount of debt or are struggling with an inopportune financial situation, filing for bankruptcy is not your only option. Instead, a consumer proposal may provide you with some relief. Before you get the process started, it is essential that you understand what these proposals entail.
Why is it Called a ‘Consumer Proposal?’
The name ‘consumer proposal’ accurately describes the process you will undergo because you are proposing a deal to your creditors. The main purpose of these documents is to negotiate a repayment plan with your creditors, so you are able to potentially minimize the amount of debt you owe.
Do All Creditors Have to be Involved?
If you have more than one lender, you are required to submit a proposal to all of your unsecured creditors. This means that all of your family and friends who might have lent you money must receive one of these proposals from you, as well.
What if a Proposal is Turned Down?
If your creditors deny your proposal, an administrator will conduct a meeting with them. At this meeting, which you must attend, you and your creditors must try to come to an agreement that is acceptable. However, if your creditors still do not accept the proposal, you may have to find an alternative solution to deal with your debts.
What are the Qualification Requirements?
If you are interested in finding out if you could benefit from filing a consumer proposal, we encourage you to reach out to us at Morgan & Partners Inc. We will help you understand if this debt relief solution is the best option for you and assist you as you prepare for the process.