consumer proposal

November 2nd, 2009 by Questions

If a CP is rejected by the creditors, can I file another CP right away that offers them more money? If so, does my old CP become null and void? What happens to the documents? Does it stay on my file with the Official Reciever? And then, they have two copies, my old CP and my new one? Do the creditors keep both as well?

I don`t want to declare bankruptcy, but instead would be fine with offering a few thousand more to stay in a CP.

Posted from: Ontario

Questions

One Response to “consumer proposal”



November 03, 2009 at 9:03 am, A licensed trustee said:

In most cases, whena creditor votes against a proposal they offer alternate terms that they will agree to. You then have the option of accepting their new terms or counter offering. If at the end of the day, a deal cannot be reached then the proposal is said to be rejected by your creditors.

If a proposal is rejected by your creditors you cannot file another consumer proposal on those same debts without Court approval. If no agreement can be reached from your first proposal, it is unlikely the Court will grant such permission unless something has significantly changed in your situation.

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