How CP works
November 20th, 2012 by Questions
Me and my husband applied for CP for first time for 140,000 of dept, our trustee told us the whole prosses will takes 45 days from the date we applied, but asked us to start paying and asked for a void cheque,but how will we know that the monthly payments are paid to creditors, do we get a letter from creditors that our CP has been approved ? even if its approved do we get a balance statement very month??? not sure how it works, i found this site very helpful , please do answer my questions…
Posted from: Ontario
One Response to “How CP works”
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November 20, 2012 at 6:52 am, A licensed trustee said:
I can’t tell if you are dealing with a trustee or not…
The normal process to file a consumer proposal is you attend at a licenced trustee’s office (only licenced trustees may file a proposal for you) in order to sign all of the requred documents. As proof that the consumer proposal has been filed it is assigned a number by the Office of the Superintendent of Bankruptcy. Your creditors have 45 days from the date of filing to for for, against or counter offer your proposal. If a majority of the dollars you owe vote for the proposal is accepted by your creditors. You still have 15 more days to “change your mind” by withdrawing the proposal. On day 60 if your creditors have accepted your offer and you haven’t changed your mind then your proposal is approved by the Court.
Most trustees require you to start making payments during the 60 day approval period – more as a sign of good faith than anything else.
Statements are usually sent every six months.
All of this should have been explained by your trustee BEFORE you filed. If you have further questions you should book an appointment to meet with your trustee and go over the process again.