Business Proposals

CREATING A PROPOSAL

What is a consumer Proposal?
How can a consumer Proposal help me?
How do I file a Proposal?
Can my Proposal be refused?
Can my landlord evict me or terminate my lease?
Can my utilities be disconnected?
Can I keep my personal possessions?
Can government debts be included in a Proposal?
What creditors will not be affected by my Proposal?
What is the cost of a Proposal?

What is a consumer Proposal?

A consumer Proposal is an arrangement to pay your creditors when you can no longer make your regular payments. It is a way to negotiate with your creditors for the reduction of your debts and/or extension of time to pay the debts. The payment plan that is developed is based on your income, living expenses and family responsibilities. A Proposal may also be funded by yourself, a third party, or through the sale of assets that would not normally be available to your creditors. The Proposal is legally binding on all your creditors once accepted. Your unsecured creditors can do nothing to collect their accounts after you have filed a Proposal . The Proposal will stop lawsuits, garnishees and seizures of assets.

How can a consumer Proposal help me?

A Proposal can:

Stop garnishees (except for maintenance or support obligations)
Stop harassment by your creditors
Give you the additional time you need to pay your debts
Reduce the total amount you must pay to your creditors
Stop further interest from being added to your debts

How do I file a Proposal ?

A Proposal is filed in consultation with a our office. The Trustee will review your situation and discuss all of your options. If you decide to file a Proposal , the Trustee will assist you to develop a payment schedule. The Proposal documents will be filed with the Superintendent of Bankruptcy and notice will be sent to your creditors. At this point there is a stay of proceedings. This means that your creditors must stop all collection action. You will then begin making payments to the Trustee who will in turn pay your unsecured creditors.

Can my Proposal be refused?

In most cases, you can negotiate terms acceptable to all your creditors. If your creditors or the Court do not believe that your Proposal is reasonable, they may refuse it and you will have to consider other options.

Can my landlord evict me or terminate my lease?

No. A landlord cannot evict you or terminate your lease for rent owing when you file your Proposal .

Can my utilities be disconnected?

No. Your fuel, water, electricity and telephone services cannot be disconnected for amounts that you owe when you file. However, the utility companies may require a security deposit to continue service.

Can I keep my personal possessions?

Your property is not affected by the filing of a consumer Proposal . However, if you have pledged an asset to a creditor, such as a car, you will have to continue the usual payments or you will lose the asset. If you cannot afford the payments on the secured asset it should be turned over to the creditor. If there is a shortfall on the loan after the asset is sold the shortfall will be covered by the Proposal .

Can government debts be included in a Proposal ?

Yes. If your creditors vote in favour of the Proposal , most government creditors are bound. This is the only process where your taxes can be negotiated and reduced. What happens if I cannot make the payments after I have started the Proposal ? Your Proposal can be changed with the approval of your creditors. If you stop making payments and do not amend the Proposal , you will lose the protection the Proposal gave you against actions by your creditors. You may have to consider filing for personal bankruptcy to continue the stay against your creditors.

What creditors will not be affected by my Proposal ?

A consumer Proposal will not bind creditors for the following debts unless they consent to the Proposal :

Secured debts if you wish to keep the assets pledged
Court fines, penalties and restitution orders
Maintenance and support
Most student loans
Civil judgments for sexual assault, assault causing bodily harm or wrongful death
Debts involving fraud or misrepresentation

What is the cost of a Proposal ?

The fees paid to the Trustee are included in the settlement made by you under the terms of the Proposal . There is no additional cost to you. However, if the Proposal is not accepted by your creditors, you will be responsible to pay our office $1,000 to cover fees and disbursements.
Top