Consumer Proposal Windsor

A consumer proposal in Windsor is an offer you make to your creditors, through the services of a trustee (technically known as the administrator of the consumer proposal), generally to accept less than the full amount of your debt.

The first step to filing a consumer proposal is to sit down with a trustee and review your debts, budgets and assets. The offer you make to your creditors will depend on your unique situation, and we will review that in detail at the meeting.

To be eligible to file a consumer proposal, your debt must be less than $250,000 (not including the mortgage on your principal residence). If you and your spouse have mainly joint debt, you might be eligible to file a joint consumer proposal and together your debt cannot exceed $500,000. If you debt exceeds this limit, you can still file a proposal, but it is known as a division 1 proposal and different rules apply. Contact us for more details.

Once you have filed the consumer proposal, the unsecured creditors have 45 days to submit their vote to us. They will vote either yes, no, no with alternative terms or they might not vote. On day 46 we review the votes. If the majority in dollar value of the creditors vote yes, the proposal has passed. After another 15 days have passed (to allow for court review if needed) the proposal is deemed approved by the court and is now binding on all of the unsecured creditors.

If the majority in dollar value of the creditors vote no, a meeting is called within 21 days to review the proposal and to allow for any amendments. At this meeting another vote is called and the proposal will either be accepted or rejected.

Upon acceptance of the consumer proposal you continue to make your payments to us. We then distribute the money to the creditors on a set schedule. Once the terms of the proposal have been fulfilled, the debtor obtains a certificate of full completion and is released from all debts, other than those which are not released in a bankruptcy (such as fines, fraud, support, student loans less than 7 years old).

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