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If my Consumer Proposal is rejected can I try again?

We have been denied by the Royal Bank only in our consumer proposal. We have tried to negotiate with them, but they won’t accept what we can afford to pay…our trustee didn’t seem to come to our defense or help. What is our recourse, should we try another Consumer Proposal or go straight to Bankruptcy?

Posted from: British Columbia

One Response to “If my Consumer Proposal is rejected can I try again?”

A licensed trustee said...

If your proposal was rejected by a majority of the dollars you owe and no alternate terms were agreed to then you cannot file a second proposal. What woud be the point? Unless you have decided that you will accept whatever terms the Royal Bank asked for they will simply say no again…

Trustees are not permitted to act as your advocate – that’s not how the process works. In our own practice, we will not allow you to file a proposal that we don’t think will be approved – in cases involving the Royal Bank in particular we caution people that the bank often rejects the initial offer and request a higher monthly payment. It is a matter of dealing with a trustee that files enough proposal to “know” how the different banks react and what will be needed to have your proposal accepted by your creditors.