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Consumer Proposals in Vernon

There are many tools that can be used to effectively manage financial instability. The most commonly considered method of relieving debt is bankruptcy, but this should always be considered a last resort.

A Consumer Proposal is an agreement that is negotiated on your behalf to help you meet your debt obligations and avoid bankruptcy.  This helps you to protect your assets and manage your credit score.

Proposals will outline the financial status of the debtor, and any possible reasons for the financial insecurity.  Through this process, your Trustee may request that Creditors accept a lower percentage of the overall debt, or that they accept the full amount over a longer period of time.  The end result is fully serviced loans and improved financial stability.

How do I get started?

After consultation to discuss your financial needs and obligations, your Trustee will prepare a proposal and submit it to all of your creditors.  This proposal must be accepted or rejected within 45 days.  If it is accepted, you will begin making a lump sum monthly payment to your Trustee who will distribute the funds on your behalf until your debts have been paid down in full.  Should the proposal be rejected, renegotiation with your creditors may be required until an agreement can be met.  Ultimately, the goal is to provide a fair an equitable solution for all.   In some cases, an agreement cannot be made, and you will need to reconsider your options.  Your Trustee will help you to decide what steps to take next.

What Happens If I Miss a Payment?

A consumer proposal is an agreement between you and your creditors.  They agree not to pursue you for your prior delinquent payment history as long as you continue to pay in accordance with the proposal.  Should you miss three monthly payments, or should you miss a quarterly payment, your proposal can be annulled and any protection that had been afforded to you will be lost.  Continuing to make your payments on time is key to a successful consumer proposal.

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