A consumer proposal is a formal procedure governed by the Bankruptcy and Insolvency Act of Canada.
The Act requires that you obtain the assistance of an Administrator in preparing a consumer proposal.
We at Keith G. Collins Ltd., as Administrators of Consumer Proposals, can help you regain control of your finances.
How Does a Consumer Proposal Work?
A consumer proposal allows you, with the assistance of an Administrator of Consumer Proposals such as Keith G. Collins Ltd., to make an offer to pay your creditors a portion or all of your outstanding debt over a specified period of time. It is necessary for creditors representing more than 50% of your debt to agree to the terms of the consumer proposal.
If approved, all unsecured creditors are bound by the proposal. You make the specified payments to the Administrator, who in turn pays your creditors. Upon meeting the obligations outlined in your proposal, you will receive a Certificate of Full Performance and be legally released from your debts.
What Are the Advantages of a Consumer Proposal?
The benefits of a consumer proposal are that:
Am I Eligible for a Consumer Proposal?
If you are an individual with $250,000 or less in debt, not including the mortgage on your principal residence, a consumer proposal may be the ideal solution.
Contact Keith G. Collins Ltd. for a free initial consultation and let us help you determine whether a consumer proposal is a viable option.
How Can a Consumer Proposal Help Me?
A consumer proposal sets out a plan for repayment of a portion or all of your debt in a manner which alleviates pressure from your creditors.
Additionally, unless the consumer proposal provides otherwise, it stops further interest from accumulating.
Is There Any Financial Counselling if I Do a Consumer Proposal?
To obtain a Certificate of Full Performance of your consumer proposal, you are required to attend two financial counselling sessions. At Keith G. Collins Ltd., these financial counselling sessions are provided on an individual basis.
A review of the factors that led to your insolvency and a discussion of ways to avoid future financial difficulties is the focus of these sessions. Additional financial counselling can be arranged if requested.
Can My Creditors Refuse to Accept My Consumer Proposal?
Each consumer proposal is individually prepared and every situation is unique. Normally, if your proposal is reasonable, your creditors will accept it. We can help you to determine what is reasonable and manageable so that your consumer proposal will be accepted. In the event that it is not accepted, there are a number of other options that you can then pursue, such as amending the terms of the proposal as requested by the creditors.
For more information on consumer proposals and any of our other services, or to book a free initial consultation please contact us at 204-944-0187 (toll free: 1-800-263-0070). If you would prefer, you can complete our First Step form.