Consumer Proposal denied?
I am considering filing a consumer proposal. I am unemployed, but my husband is willing to enter into a third party agreement to pay the proposal. My concern is this, if the proposal is not accepted, am I automatically forced into bankruptcy?…or can I just continue to not answer the phone?
There are 2 types of proposals. The standard one is referred to as a consumer proposal and you qualify for this type if you have less than $75,000 in non-mortgage debt. If you file a Consumer Proposal there is no automatic bankruptcy provisions should the creditors not cooperate (although this is rare, we find most proposals are successful).
The other type of a proposal is referred to as a Division I Proposal, it is ultimately for those who don’t qualify for a Consumer Proposal and it contains an automatic bankruptcy provision.
The best thing to do is have your situation reviewed by a local trustee, have them give you an idea of what a reasonable amount to be offered is and confirm what type of administration it would be (i.e. is it a consumer or a div I that you would be looking at).