Things I need to know about a consumer proposal.
I had a bakruptcy in 1999; discharged in 2005; my financial situation has forced me into a Consumer Proposal; what are some of the issues I will have? and how will this new proposal affect my credit?
Thanks
Posted from: Ontario
This is a quick overview of the things you need to know about a consumer proposal:
1. The creditors have to cooperate with the offer that is made, if you fail to have creditors support the proposal it will be null and void;
2. As part of the proposal you must attend 2 counselling sessions, just like in a bankruptcy;
3. If you miss the equivilent of 3 payments, either cumulatively or consecutively, the proposal is null and void and you are back at square one;
4. During the proposal there is a stay of proceedings that is in place that forces your creditors to follow the rules and procedures laid out in the Bankruptcy and Insolvency Act.
5. You must treat the opening offer provided in the proposal as a starting point. You may have to negotiate with the creditors to get the necessary support for the proposal to fly.
6. In terms of credit, you will have an R7 listed with the credit bureau for 3 years from the date you are discharged.
These are the key things you likely reviewed with your trustee and if you need any further clarification I suggest you contact their office for a greater explanation.