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automatically placed into bankrupcy?

I was in a consumer proposal and a third payment bounced. Now I have a creditor calling and I hav`nt received anything from my trustee. You say in another post that I will be automatically placed into bankrupcy? How does that work because the crditor is saying I just have to pay and the value is the same as it was 2 years ago. What do I do?

Posted from: British Columbia

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One Response to “automatically placed into bankrupcy?”

A licensed trustee said...

There are no automatic bankruptcy provisions for consumer proposals – you must have misunderstood something you read (or were told). When your proposal is annulled the creditors’ rights are re-instated – that means they have a right to contact you and expect payment.

If you are looking for options you should speak to the trustee that was handling your proposal – you may actually want to file for bankruptcy to deal with the debts, or you may want to consider the other options your trustee describes to you.