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Consumer Proposal – 3 Payments Missed

My husband had a consumer proposal. He could not continue to pay the monthly payments. The trustee cancelled the proposal and told him that he could not do anything more for him. What will happen to my husband? He would like the proposal amended but the trustee told him it was too late because he did not pay 3 payments (this is after making 18 payments). The trustee knew very well my husbands situation and also the income on the consumer proposal was not correct from the very start. My husband consulted another trustee and he told him that the 1st trustee had to help him. The trustee discharged him and told him that he could not help him anymore!!! What can he do? Thanks for your help.

Posted from: Quebec

One Response to “Consumer Proposal – 3 Payments Missed”

Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...

It makes no difference if you husband made 17 or 37 payments, when the equivalent of 3 payments are missed a consumer proposal is null and void. Now there is one small avenue that a trustee can use to waive the default. But not every file qualifies for this as there are a number of requirements that must be satisfied. This revival process is time sensitive and had to be completed within 30 days of the default. So unless the default just barely happened you may be out of luck even if you did qualify at the time. If that is the case your husband may be forced to look at a bankruptcy.