July 31st, 2005 by Questions
What happens after a proposal has been accepted but your financial situation/obligations change? (say you lose a job, have to pay higher rent, run into other problems, etc)?
August 01, 2005 at 8:59 am, A licensed trustee said:
Once a consumer proposal has been accepted, under normal circumstances the terms do not change until the proposal is completed.
In most cases this is good, because unlike a bankruptcy even if your income increases the payment remains the same, giving you an opportunity to pay off your proposal sooner.
However, if your financial circumstances get worse during the proposal, you have three options:
First, you can cut back on other expenses, or find additional income (such as a part time job) so that you can continue to make the payments.
Second, if you are unable to make the payments, the proposal will be annulled, and you must then either deal with the creditors on your own, or perhaps go bankrupt.
The final option is to contact your proposal administrator and attempt to amend the proposal. This requires the approval of your creditors, so you should consult with your proposal administrator to decide which option is best for you.
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