If you’re looking to break free of personal debt once and for all, we can help. We provide debt and bankruptcy solutions that are life-changing and permanent, so you can erase debt from your life.
Our Life-Changing Debt Solutions are designed to permanently get you out of debt once and for all – so you can stop worrying and start living again.
Debt can be overwhelming. For that reason, our Licensed Insolvency Trustees are always here for you. let’s discuss the options available to you. Your debt-free future starts now.
Bankruptcy and Insolvency Act (the “BIA”) governs the criteria for filing a Consumer Proposal under the BIA. A Consumer Proposal can be made by:
A Consumer Proposal can be for a maximum of five years. A Consumer Proposal is available to individuals with total debts of $250,000 or less, including a secured debt on an automobile but, excluding mortgages on the debtor’s principal residence. A joint Consumer Proposal can also be made where the debts of the individual debtors making a joint Proposal are substantially the same and the Licensed Insolvency Trustee (“LIT”) believes a joint Proposal is in the best interest of the joint debtors and the creditors. Where a joint Consumer Proposal is made, the threshold increases to $500,000.
If you are an individual who has filed a bankruptcy under the BIA and you have not been discharged from bankruptcy, you may opt to make a Consumer Proposal to your creditors. It’s important to note however, the Proposal must be filed before you are discharged from bankruptcy. Once you have been discharged from bankruptcy most, if not all, of your debts will have been released or “wiped out.”
There are several benefits to making a Consumer Proposal to your creditors. Some of these benefits include the following:
In deciding whether to continue with your bankruptcy or make a Consumer Proposal to your creditors, the LIT will outline the challenges that you need to be aware of before you begin the process of filing a Consumer Proposal. For instance:
If you are near default of the terms of your Consumer Proposal due to a material change in your personal / financial / employment situation, and before there is a deemed annulment of your Proposal, you may speak with the LIT about filing an amendment to your Proposal. The amendment may be for a reduction in (monthly) payment, a reduction in the number of (monthly) payments, or both. The amended Proposal must provide for a greater dividend distribution to creditors than what your creditors would otherwise receive in a bankruptcy.
Your creditors must approve the amended Consumer Proposal. If the amended Proposal is refused by your creditors, the original Proposal will be deemed to be annulled (i.e. you cannot revert to the original Proposal). The failure of creditors to approve the amended Proposal will result in you reverting to bankruptcy.
Mary Plahouras holds a Master of Laws in Bankruptcy and Insolvency Law from Osgoode Hall Law School and is an Estate Manager at MNP’s Toronto and Markham locations. To learn more about how MNP Debt can help you, contact our local office at 416.515.3921.
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*310-DEBT doesn’t operate in MB, NW ON and QC.
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