Consumer Proposal in Ontario A consumer proposal in Ontario is a formal legally binding deal that you make with your creditors. If you're deeply in debt and can't take out a bank loan, but have a stable source of income, an Ontario consumer proposal may be a good option. Consumer proposals in Ontario allow you to make those payments to the creditors, but over a designated period of time. If you have more than $5,000.00, but less than $250,000.00 in debt (excluding mortgage payments), you can qualify to file a consumer proposal in Ontario. You cannot have any previous consumer proposals open. Even if you filed bankruptcy previously, you can qualify for a consumer proposal in Ontario. In order to take advantage of this option, you must first contact a licensed trustee in bankruptcies, who will proceed to give you an assessment. The trustee will evaluate your debts, assets, income, family situation, and expenses. Once all that information is gathered, it will be determined if filing a consumer proposal in Ontario is the right solution for you. If not, the trustee may suggest a debt consolidation loan, credit counseling, a debt management plan, or personal bankruptcy. If you are a viable candidate for a consumer proposal Ontario, your trustee will devise a plan calculating how many months it should take to pay your creditors and the amount you pay per month. Then you must submit a claim to the creditors. The creditors may or may not accept your claim. Sometimes they'll accept it, but only under certain terms. The trustee will guide you through this process, warning you if the creditors ask for any unusual terms. You must beware of the fine print. Sometimes the creditors will only send you proof that they received the claim, while neglecting to accept or reject it. In the worst case scenario, they do nothing at all, neglecting to even send you a proof of claim. Nevertheless, under the Bankruptcy and Insolvency Act, the creditors have 45 days to come to a decision. The trustee cannot vote on your behalf. If there's a 25% vote against your claim, your trustee is required to schedule a meeting of creditors. At this point, you will attend the meeting, which will determine if the majority (over 50%) of creditors can come to an agreement. Only two votes can be reached: acceptance or rejection. The creditors rarely ever reject their claims. After all, they'd rather get some money than nothing. In the best case scenario, the trustee can work out a deal, so that you only have to pay 50% of what you owe to these creditors. However, in a lot of cases, you may have to pay a greater amount. Learn about consumer proposals in Ontario. Learn about consumer proposals in Ontario vs. debt settlement. consumer proposal in ontario, consumer proposal in ontario vs. debt settlement, consumer proposals in ontario, ontario consumer proposal, file a consumer proposal in ontario, filing a consumer proposal in ontario, ontario consumer proposals, consumer proposal programs in ontario, filing consumer proposals in ontario. A consumer proposal in Ontario only eliminates unsecured debt (i.e.: credit cards, personal loans, incomes taxes). Ontario consumer proposals are not created to assist you with secured debt like mortgage payments and car loans. Get started now!
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