Annulled proposal due to late payment
We started with a consumer proposal but missed a couple of payments. After the last one they immediately cancelled the proposal. We are now left with a mismatch of credit situations. some say written off, others are attempting to collect. Another bankruptcy is not an option. What is your answer to our situation. I would like to get on the road to credit recovery. thank you
Posted from: Ontario
Let’s start with some truth – your proposal must have been 3 payments in arrears in order to be annulled. This is an automatic feature of the law, not something arbitrarily applied by your trustee.
You have a few options:
1) file bankruptcy to deal with the debts: you’ve said “another bankruptcy is not an optin” which suggest you’ve done this at least once before
2) talk to your existing trustee about “resurrecting” your proposal. There are provisions under the law to do so – you will need to bring your payments current and possibly hire a laywer to bring a motion before the Court for permission to complete your proposal
3) pay off your debts – contact each of your creditors and see if you can come to an agreement
4) do nothing and see what happens. This only sounds frivolous, but you may want to wait a few months to see if any of your creditors decide to pursue you. Some of them may not. Of course if you choose this route you can forget about the second option.