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.
A Consumer Proposal is a formal offer to your creditors to settle your unsecured debt. It reduces the overall amount of debt you pay back while ensuring your creditors still recover a percentage of what’s owed to them.
You can pay this balance in one lump sum. Or in monthly installments over a specified timeframe, up to a maximum of five years, which would reduce your total number of debt payments to one per month.
Consumer Proposals benefit both you and your creditors.
Licensed Insolvency Trustees customize your proposal to suit your income and debt load, making it a great option for people of all financial situations. It is also beneficial if you want to keep assets that would otherwise be available to creditors through a bankruptcy.
Creditors will also see a higher return through a Consumer Proposal than they would in a bankruptcy. So you will feel good about paying a percentage of your debt back and your creditors will be happy to recover a portion of the debt owing to them.
After the Licensed Insolvency Trustee files your Consumer Proposal, it will be presented to your creditors. Your creditors have forty-five days from the filing date to vote for or against the proposal.
During this period, negotiations can occur with any creditor who votes against a proposal. A majority by dollar value must vote in favour of the proposal for it to be accepted. If a certain percentage of creditors holding a certain dollar amount of the debt vote against the proposal, a meeting of creditors will likely be held to determine whether an amended proposal will be acceptable or whether the proposal will be rejected.
Once your proposal is accepted, your requirements to complete it are very straightforward:
You will receive a Certificate of Full Performance upon completion of the Consumer Proposal and your debts will be legally discharged.
Yes, you can. You have the freedom to take the full length of time to pay off your proposal — but if your income increases or you receive a large tax refund, bonus or windfall, you can direct these funds toward your proposal.
Not only can you pay off your proposal early, you are also free to make as much money as you want. In a Bankruptcy, you must report monthly income to the Trustee and an increase in income can trigger a monthly payment (or a higher monthly payment). This provision does not exist with a Consumer Proposal.
Once you file a Consumer Proposal, the included debts will receive an R9 (the worst) rating on your credit report. This will remain until the end of your proposal, then change to R7 for a further three years.
If you pay your proposal off sooner than agreed upon, you will speed up your credit recovery. If you reduce your proposal by a year, the R9 rating disappears a year earlier and the R7 rating takes over for it’s three-year run.
A Stay of Proceedings is in place as soon as the Licensed Insolvency Trustee files your Consumer Proposal. This halts current collection action and prevents further collection action and wage garnishments by your creditors, including harassing phone calls from creditors and collection agents.
Yes, you can have credit while in a Consumer Proposal.
However, if consumer debt was the main reason for filing your Consumer Proposal, exercise extreme caution when accessing credit again. Some people choose to wait many months — or even a few years — before they feel confident obtaining or using credit again.
Only a Licensed Insolvency Trustee may file a Consumer Proposal. With their extensive experience and in-depth knowledge of the
Bankruptcy and Insolvency Act (BIA), Licensed Insolvency Trustees can structure a custom proposal that works within your budget and provides a satisfactory return to creditors.
A no obligation
Free Confidential Consultation with a Licensed Insolvency Trustee will help you decide if a Consumer Proposal is the right debt solution for you.
Based out of Vancouver,
Lana Gilbertson is a Licensed Insolvency Trustee and Senior Vice President at MNP LTD. To learn more about how MNP Debt can help, contact our local office at 310.DEBT (310.3328) or toll-free at 1.877.363.3437.
Based out of Courtenay,
Selina Jacobson is an Assistant Estate Manager and Registered Insolvency Counsellor at MNP LTD. To learn more about how MNP Debt can help, contact our local office at 1.877.363.3437 or toll-free at 310.DEBT (310.3328).
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*310-DEBT doesn’t operate in MB, NW ON and QC.
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