Length to file a Consumer Proposal
With a consumer proposal and how long it takes to file a consumer proposal will depend on the following steps with regards to the actual time.
- Step one: You meet with a Trustee and then determine that a Consumer Proposal is the best option for you. The Trustee will go over the pros and cons regarding a Bankruptcy or a Consumer Proposal, helping you to decide which the best option is.
- Step Two: The next step is for the Trustee to file your consumer proposal with the office of the superintended of bankruptcy. With the filing of the proposal, this requires all unsecured creditors to stop wage garnishments, legal action and any credit collection. Thus at this stage, unsecured debts stops accruing, and filing your proposal means that you will also stop making direct payments to these unsecured creditors.
- Step Three: Your consumer proposal and a report regarding your financial situation is then submitted to your creditors.
- Step Four: From the date submitted, your creditors have 45 days to accept/reject the proposal. Your trustee oversees a number of steps involved here. Furthermore, after 15 days from the creditor approval if it is deem accepted by the court. The actual time with this step will depend on any proposal objections as this will further extend the process.
- Step Five: When/if your Consumer proposal is Accepted, you now need to follow all of the agreed conditions of the proposal, and make all of the required payments as agreed to your Trustee, who will then distribute the funds. With an accepted consumer proposal, you will also get to keep your assets, if you keep making payments to your secured creditors.
- Step Six: If your Consumer Proposal is not accepted, you can resubmit your consumer proposal once you have made reasonable alterations to the proposal. Another option is to review your current situation and see if you have any other possible options to repay your debt. The last option for consideration if your consumer proposal is not accepted is to file for bankruptcy.
If you are able to fully complete the conditions of your proposal, then you will legally be released from all the debts that were covered within your consumer proposal.
If you the conditions of the proposal are not met, (ie you miss 3 months payments without filing an amendment to the proposal, it will then be deemed annulled, and then your creditors will now be able to take any legal actions against you in order for them to collect the debts that are owed to them.
If you are in need of financial advice regarding a consumer proposal or bankruptcy, the offices of David Sklar and Associates would be glad to help review your case and see which option would be best for you. Free initial consultation available. Call us today!