consumer proposal annulled

October 26th, 2009 by Questions

If a consumer proposal was annulled but the information submitted to the court was incorrect (identified months of missed payments), can the trustee return to court and withdraw the submission and and continue with the proposal.

Posted from: Ontario

Questions

One Response to “consumer proposal annulled”



October 27, 2009 at 8:59 am, A licensed trustee said:

Most proposals are annulled automatically – no application is made to the Court – as soon as you fall 3 payments into arrears your proposal is canceled. If you don’t think you fell 3 payments into arrears and you’ve continued to make all your payments since (if you haven’t then you’ll definitely be 3 payments in arrears now) then your proposal can be re-instated (actually, it was never cancelled).

You have the right to apply to the Court and ask permission to file a second proposal that includes the debts from your first proposal, but this isn’t done very often as you’ll need a lawyer to make the motion to the Court and it will costs some where around $2,000 – $2,500 to do. Before you ask, your trustee cannot make this motion for you – it’s work for a lawyer (and trustees are not lawyers).

You may want to speak to a trustee about you options (presumably not the firm that had to cancel your proposal for non-payment).

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