Your trustee will ask you to provide information … discuss some of these options … He/she will recommend a consumer proposal if … make an informed decision …

While you must be insolvent, there is actually much more to it. … Can I file a consumer proposal jointly with another person? … Can I file a consumer proposal if I am bankrupt already? …

Figure out what portion of your debt to offer … You must offer your creditors a greater benefit … be able to make the payments … it is up to your creditors to accept …

Your creditors have 45 days … may do one of the following … Outcome of the vote … Rejection is uncommon …

You may have lost your job. … Two payments could be rescheduled … it is possible to amend the proposal … contact your trustee … Your options at this point include …

Proof of completion. … rebuild your credit … share your wisdom … Congratulations …

Financial and debt terms, legal references, proposal-related documents and events, with links to further details.

Step 4 – Filing the documents

You have provided your trustee with information about your liabilities, your assets, and your budget, and the assessment is done. You have decided to file a consumer proposal in order to obtain relief from your financial difficulties, you have verified that you are eligible, and your proposal terms have been worked out.

Several documents needed

Now, your trustee must prepare all of the paperwork you will need in order to file a consumer proposal.

Some of these documents are:

• the Statement of Affairs
• a Statement of Income and Expense
• the Assessment Certificate
• Payment terms and conditions
• Your Consumer Proposal

What the documents are for

Each of these forms and any others that your trustee may ask you to sign serve a specific purpose. Some are required by bankruptcy law and are designed to provide your creditors with enough information about your situation to enable them to decide whether or not to agree to your consumer proposal. Others are used by your trustee to ensure that all of your duties and responsibilities during the proposal have been clearly explained to you.

Important to understand

When you file a consumer proposal, you are commencing a legal procedure, and it is important that you read carefully and understand all of the documents that your trustee asks you to sign.

Filing a consumer proposal is supposed to help you solve your financial problems – if you don’t fully understand what you are signing, please take the time to ask questions. Generally speaking, only the people who don’t understand the procedure run into trouble during this process.

Filing and notifying

Once your trustee has assembled all of the documents required to file, including your consumer proposal), your trustee is required to file the forms with an Official Receiver and then mail a Notice to Creditors to all of the companies and individuals that appear on your list of liabilities. Your trustee has five business days from the time that your consumer proposal is filed with the Official Receiver to send this mailing out.

The purpose of the mailing is to make all of your creditors aware of your consumer proposal. From the date when your proposal was filed with an Official Receiver, your creditors have 45 days to vote on your proposal.

Go to Step 5 – Your creditors vote.

We hope your find this step-by-step guide helpful. For a free consultation on whether a consumer proposal is right for you, contact a bankruptcy trustee near you.