NOTE: Acceptance of the consumer proposal is dependent on a majority of the creditors voting in favour of the offer and as such the final amount may need to be negotiated if the original terms are not accepted.
Consumer Proposals British Columbia
The Consumer Proposal
Consumer Proposal FAQs
The first step in the process is to review your finances with a Licensed Insolvency Trustee who will assess your situation and discuss all of your alternatives. Should it be determined that a consumer proposal is the best solution for you, the necessary paperwork will be prepared and filed, and any legal action will be immediately stopped.
Your initial consultation is key to making the best choices for you and the appropriate actions are taken on your behalf.
Any individual who is bankrupt or insolvent and whose debts, excluding a mortgage on the debtor’s principal residence, are not more than $250,000 is eligible to make a consumer proposal.
Timing depends on a number of factors. The lengthiest part of the process is gathering the relevant information and arranging an independent evaluation as to the value of a home or property, if required. Once the application has been completed a Licensed Insolvency Trustee can prepare and file the documents immediately.
Lawyers or debt management companies are not eligible to file consumer proposals. Only a Licensed Insolvency Trustee can file a consumer proposal.
There are a number of different scenarios that may happen within the consumer proposal process. However, if the majority of creditors represented by dollar value vote in favour of the proposal, all unsecured creditors are legally bound by the process. If a creditor doesn’t vote they are legally bound by the creditors that do vote.
Upon completion of the payment terms of the consumer proposal you will receive a court order titled Certificate of Full Performance of Proposal, discharging the debtor from those debts included within the proposal. Certain debts are not eligible to be discharged from bankruptcy or a proposal. A Licensed Insolvency Trustee can help you with this.
The Licensed Insolvency Trustee’s fees are governed by the Bankruptcy and Insolvency Act. All funds/payments under your consumer proposal are deposited into a trust account. From that trust account the trustee may withdraw its fees and costs. The remaining funds are paid out to the creditors.
If your debt is greater than $250,000, you can still offer a proposal to your creditors. There are solutions available to address your individual situation. Please contact our office to discuss your options in greater detail.
Your Credit Report
Are you struggling with your finances, and accumulating debt problems? it can be difficult to know where to begin. As time passes, debts go into collections and transferred from one company to another. This makes it difficult to keep track of who you owe and how much. With your permission, D. Thode & Associates Inc., can help you figure out what you owe. Understanding the full extent of your debt is an Important step in determining the best way to move forward.
Learn your Alternatives
Our B.C Offices
Should you require bankruptcy solutions and counselling outside of Burnaby & Area, D. Thode & Associates has several offices to serve you throughout British Columbia.