failed consumer proposal
December 27th, 2007 by Questions
I recently had a consumer proposal with a trustee and due to layoffs I fell behind payments due to layoff and cut hours, and the proposal was anulled. My trustee made no attempts to inform me on other options such as changing my proposal so it would not be anulled. I don`t want to do a bankrupcy, is there any other options I could find with another trustee or get a court order to reinstate the proposal?
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December 28, 2007 at 10:18 am, Barton Goth GCO Bankruptcy Trustees said:
Very rarely will there ever be a circumstance where the creditors will accept a changed/amended proposal, but realistically if you are aware you are going to be missing payments and will soon approach the 3 month missed payment level, the onus is on you to contact your trustee and inform them of why this has taken place and it is at that time you would be informed of your options. If you take not action, the trustee has no responsibilty to chase you down.
However, when your consumer proposal has been annuled you are not eligible to file another consumer proposal on the same debts. But, you could contact a trustee and investigate the possibility of filing a Division I Proposal. This is slightly different than the proposal you filed in process, but the net effect would be the same.