A consumer proposal is a legally binding document that offers your creditors a percentage of what you owe them or requests that the time period you have to pay off your debts is extended. Upon acceptance, payments are made to us at Morgan & Partners Inc. as your Trustee in Bankruptcy, and then we use these funds to pay your creditors.
When is a Consumer Proposal Appropriate?
To determine if devising one of these proposals is the right choice for you, we highly recommend setting up a meeting with us to discuss your personal circumstances. We will then evaluate your situation and help you understand the disadvantages and advantages of the different options available to you that could help you resolve your financial problems.
How the Process Works
There is a specific process that must be followed in order for a consumer proposal to be successful, and it includes the following steps:
- We file the proposal with the Office of the Superintendent of Bankruptcy, and you stop making payments directly to your unsecured creditors.
- We submit the proposal to your creditors along with a report that outlines the causes of your financial difficulties.
- Your creditors have 45 days to either accept or reject your proposal.
Depending on your personal situation, one or more of your creditors may request that a meeting of creditors be held within 45 days of the date that your proposal was filed. During this meeting, your creditors vote to either accept or deny the terms of your consumer proposal.