Consumer Proposal Winnipeg
What is a Consumer Proposal?
To put it in its simplest terms, a Consumer Proposal is a settlement offer to your creditors. When filing a consumer proposal, Winnipeg residents – and all other Canadians – can no longer be targeted for collection actions by creditors. A Stay of Proceedings is put in place upon the filing of a consumer proposal. In this way, filing a Consumer Proposal is similar to filing for bankruptcy.
What are the requirements for filing a Consumer Proposal?
You must be insolvent, (insolvency means you are unable to pay your debts as they come due, or the value of your property is less than your debts) owe between $1,000 and $250,000, and be a resident of Canada in order to file a consumer proposal. Winnipeg residents, and all Canadians, owing more than $250,000 can still file a proposal, just not a consumer proposal. Couples filing a joint proposal can file if they jointly owe under $500,000.
What happens after a Consumer Proposal is filed?
Once a consumer proposal is filed, creditors have 45 days to respond to the proposal and vote on the proposal. If 25% or more, by dollar value, of your creditors vote against the proposal and request a meeting of creditors, a meeting of creditors must be held. At the creditor meeting, the proposal will be accepted or rejected by a simple majority of creditors. If the proposal is initially rejected, it can be amended to something that will hopefully be accepted. If an agreement cannot be reached, bankruptcy is always an option.
What are your duties in a Consumer Proposal?
In a consumer proposal, Winnipeg residents, and all Canadians, are required to attend the same two counselling sessions as in a bankruptcy. If the counselling sessions are not attended, the Consumer Debtor is not eligible for a certificate of Full Performance, which would otherwise be received once all payments are made.
What are the benefits of a Consumer Proposal?
- No loss of assets
- No surplus income payment requirements
- No impact on professional designations
- No fees in addition to the proposal payments offered to creditors
- No loss of tax refunds
- Credit rating improves to R7 once completed
- A Consumer Proposal can be a path to affordably repaying at least a portion of what you owe
- The end result of a Consumer Proposal will be to get you out of debt
- A Consumer Proposal may be an avenue to affordable payments
- A Consumer Proposal will eliminate additional interest charges
- Once your Consumer Proposal is filed, you will be automatically protected from collection efforts by your creditors through a Stay of Proceedings
- A Consumer Proposal will protect you from garnishments
- Consumer Proposals are by nature flexible – yours can be tailored to your unique needs
Are There Disadvantages to a Consumer Proposal?
- A Consumer Proposal may cost more and last longer than a bankruptcy
- If you fail to uphold your side of the Proposal and complete all payments, you will again owe the full amount (less payments already made to your creditors). Your debt will only be erased when agreed upon payments are made in full.
- Some debts cannot be discharged through a Consumer Proposal, including: student loans that are less than 7 years old; alimony, maintenance, and child support; fines and penalties issued by the court; debts resulting from fraud or misrepresentation; awards of damages by a court resulting from intentional injury claims
Learn more about our services for consumer proposal bankruptcy Winnipeg
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I just want to take this opportunity to thank Bruce for preparing Consumer Proposals for my wife and I. We had been purchasing tax programs for seven years, and when Revenue Canada suddenly disallowed the program, we found ourselves in a position of a large tax arrear. In trying to service the large tax debt, we fell behind in our other payments to the point where they became unmanageable. It was at this point we looked for help. We were referred by a friend to a company, and after discussing our situation they said Bruce Caplan was the man we should speak to. We were grateful for that referral. We met with Bruce and found him professional and knowledgeable. He put together our two proposals and had them quickly approved. Bruce was also very accessible during the preparation of the proposals, which we found very helpful. My wife Sarah and I (Peter) can refer Bruce Caplan to you as a true Professional in his work.
Peter and Sarah