Filing Consumer Proposal
You have decided to on filing consumer proposal in order to obtain relief from your financial difficulties, you have verified that you are eligible, and your proposal terms have been worked out.
Now, the administrator will prepare the paperwork need in order to file your consumer proposal. Some of these documents are:
- the Statement of Affairs
- a Statement of Income and Expense
- the Assessment Certificate
- Your Consumer Proposal
What these documents are for
Each of these forms and any others that the administrator may ask you to sign serves a specific purpose. Some are required by bankruptcy law and are designed to provide your creditors with enough information about your situation to enable them to decide whether or not to agree to your consumer proposal.
Other forms are used by the administrator to ensure that all of your duties and responsibilities during the proposal have been clearly explained to you.
Important to understand
When you file a consumer proposal, you are commencing a legal procedure, and it is important that you read carefully and understand all of the documents that the administrator asks you to sign.
Filing a consumer proposal is supposed to help you solve your financial problems – if you don’t fully understand what you are signing, please take the time to ask questions. Generally speaking, the people who don’t fully understand the procedure are the ones who run into trouble during this process.
Filing and notifying
Once the administrator has assembled all of the required documents, including your consumer proposal, the administrator files the forms with the Official Receiver and then sends a Notice to Creditors to all of the creditors that appear on your list of liabilities. The administrator has five business days from the time that your consumer proposal is filed with the Official Receiver to send out this notice.
The purpose of the notice is to make all of your creditors aware of your consumer proposal. From the date when your proposal was filed with the Official Receiver, your creditors have 45 days to vote on your proposal.
For a free consultation on whether a consumer proposal is right for you, contact a Licensed Insolvency Trustee near you.