Consumer Proposal West Kelowna

Restructuring Debts with a Consumer Proposal

When faced with overwhelming debt, bankruptcy is often considered the only solution.  The truth is, a consumer proposal is an excellent alternative that can save your credit score and help you to retain your assets.  We can help you to restructure your debt payments and get some much-needed relief from your financial stress.  Our Trustees can help you to determine if a consumer proposal is the right choice for you.  Contact us today for service in Kelowna, Kamloops or the surrounding interior locations.

Consumer Proposal West Kelowna

A Consumer Proposal is a negotiated agreement between a Debtor and their Creditors.  This agreement is facilitated by a Trustee in Bankruptcy who will work with all parties to try to arrange for a fair and equitable solution for all.  The ultimate goal of the consumer proposal is to ensure that debt obligations are met and satisfied in full so that bankruptcy can be avoided.

Payment Processes

Your trustee will prepare a summary of your income and debts, and will determine the amount that you can pay to each creditor on a monthly basis.  This payment will be paid in one lump sum to your Trustee, who will then distribute the funds to each lender, as required in the proposal.  During the time that the proposal is in effect, no creditors can contact you directly and no garnishments or lawsuits can proceed against you.  This allows you to pay down your debt and discharge your loans on a timely basis.

Rejected Consumer Proposals

Your creditors have a maximum of 45 days to reject your proposal.  Should your proposal be rejected, you and your Trustee will decide whether to amend to the proposal to accommodate your creditors, or if you are better served by declaring bankruptcy.

Missed Payments

Should your consumer proposal be accepted, it is imperative that all payments are met.  Missing payments can result in the termination of your agreement – giving creditors the freedom to pursue your obligations in the same fashion as before the proposal was put in place.