change consumer proposal (amendment to consumer proposal)

Now I am at 9th month of a 3-year , $700/month payment consumer proposal.

Since my personal situations change a lot, and I expect more difficult in completing this proposal, at the mean time, I still do not want to go to bankruptcy.

So may I apply to make an amendment of this consumer proposal? Such as, change the term of 3-year down to 2-year or less, and change the monthly payment from $700 down to $500 or less?

If I fail in making amendments to this consumer proposal, may I still go back to the original proposal? or will I go back to the life before this original consumer proposal (creditors call me again, loans start count interests again, etc), or will creditors/and trustee force me to go bankruptcy?

I once talked to my trustee about the idea of the amendment to consumer proposal. But I was informed that I cannot make amendment to consumer propsal, but I can only file bankruptcy if I want to change the original consumer proposal. So May I change to other trustees who will help me to make amendment to consumer proposal? Is it possible?

Posted from: Ontario

One Response to “change consumer proposal (amendment to consumer proposal)”

Barton Goth – Goth & Company Inc. – Bankruptcy Trustees said...

While technically you can amend a consumer proposal it is likely going to be a difficult process. For whatever reason the creditors don’t seem to be to keen on a reduction of what they originally agreed upon and they essentially have to re-vote. The biggest problem with this is in a re-vote it doesn’t go back to the original proposal, if the creditors reject it your proposal is annulled. So it is a big risk.

In terms of changing a trustee, this is even more rare and difficult than re-negotiating a proposal for a lower amount, it can be done, but I wouldn’t recommend it seems how most trustee’s are going to have a similar answer in this case… if you can’t afford the proposal you may have to consider a bankruptcy.