The four main steps to filing a Consumer Proposal in BC are outlined here:
- Meet with a Licensed Insolvency Trustee to assess your situation and review all the options available to resolve your debts.
Consumer Proposals are tailored to each person’s unique situation; your Sands & Associates Trustee will help you work out a payment plan that is suitable for your income, family size, and other relevant factors.
- When you’re ready to file your Consumer Proposal, you’ll meet with your Licensed Insolvency Trustee to sign the official Consumer Proposal documents. Once complete, these will be officially registered and sent to your creditors, so they can consider your proposal.
Your creditors have 45 days to consider your Consumer Proposal. If more than 50% of your creditors (by dollar value) vote to accept your proposal, then the Consumer Proposal will be legally binding on all the creditors the proposal is made to, even if some have not agreed.
Consumer Proposals are nearly always accepted by creditors, as they will provide a better return on the debt than if you decided to file a personal bankruptcy. They also give all parties a clear start and end date.
When your Consumer Proposal is filed, this is when interest becomes frozen, and collection action against you must stop immediately.
- Complete the terms of your Consumer Proposal. Once your Consumer Proposal has been accepted, you’ll begin working to complete the terms offered, this is usually by making monthly payments to the Licensed Insolvency Trustee, for distribution to your creditors.
You’ll also have two financial counselling sessions, which will focus on credit rebuilding and good financial management.
You can pay off your Consumer Proposal early or make extra payments towards the settlement amount at any time, with no penalty.
- When your Consumer Proposal terms are complete (ie. the last payment is made) you’ll receive an official Certificate of Full Performance. You are now debt-free and have achieved a financial fresh start!