How Long Does it Take to File a 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 almost immediately.
Do I Need a Lawyer or a Debt Management Company?
Lawyers or Debt Management Companies are not eligible to file Consumer Proposals. Only a Licensed Insolvency Trustee can file a Consumer Proposal.
Do My Creditors Have to Accept the Terms of My Consumer Proposal?
There are a number of different scenarios that may happen within the Consumer Proposal process. However, at the end of the day, 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.
What Happens Once I Complete the Payments/Terms of the Consumer Proposal?
Upon completion of the 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; more information on these debts can be found HERE.
What if My Debt is Greater Than $250,000?
If your debt is greater than $250,000, don’t worry, 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.
Client Success Stories
Dale is 58 years old and divorced. For over 15 years, Dale had owned and operated a business. Over the previous two years, Dale had seen a significant slowdown in his business and was unable to draw any income for himself. He relied on personal credit to pay his personal expenses.
Dale approached D. Thode & Associates Inc., at first assuming that personal bankruptcy was his only option in dealing with the enormous debt load that had resulted from personal guarantees on his business debt and from personal credit cards. His debt exceeded $300,000. At that time, Dale was unemployed and was being supported by friends and family.
At the meeting, Dale found out that filing a Proposal to offer a settlement to his creditors was an option and he was able to secure funding of $30,000 from family friend to settle this debt.
Dale’s creditors and the court approved the Proposal. He was able to start fresh just over two months after filing his Proposal.
Karen was 49 years of age and separated from her spouse at the time she approached D. Thode & Associates Inc. for financial advice.
Karen’s estranged spouse had operated a business that ultimately failed. Karen had used her personal credit to support the family during this time and the couple ultimately separated afterwards. Karen was faced with $120,000 of her own unsecured debt and only $1,600 per month of income. She desperately wanted to avoid bankruptcy.
After meeting with D. Thode & Associates Inc. and learning about the option of filing a consumer proposal, she was able to secure funding from her parents to offer a lump sum payment to her creditors of $8,000. In the alternative, had she filed for bankruptcy, her creditors would not have received anything.
After careful consideration, the creditors accepted the offer to settle and Karen completed her proposal in only four months. She was able to put the stress of her failed marriage and the crushing debt load behind her.
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We want to help you to get out of debt. Don’t hesitate to contact us if you would like to learn more about bankruptcy alternatives like consumer proposals & debt consolidation. Contact us today for more information.