What is a consumer proposal?
A consumer proposal offers those in debt a legal way to settle for less than the amount they owe. It involves working with a Licensed Insolvency Trustee to negotiate a settlement between you and your creditors. Unlike filing for bankruptcy, which consists of eliminating your debts, a consumer proposal helps you formulate a payment plan for becoming debt free over time. This option gives you more control over your financial situation and protection over your existing assets, such as your house, business, or car.
How many times can you make a consumer proposal?
Whether you’re filing for bankruptcy or a consumer proposal, there is legally no limit to the number of times you can do so in your lifetime. You will still need to meet the eligibility criteria to file, meaning you must be insolvent and owe more than $1000. And the good news is that there is no penalty for filing a consumer proposal more than once. There are no negative implications to your credit score. Each filing remains on your credit report for three years after completion or six years after the filing date, whichever comes first.
How do I file a second consumer proposal?
If you wish to file a consumer proposal to relieve your debts, the process will be the same as your first one. You will work closely with a Licensed Insolvency Trustee who will evaluate your debts and financial situation. They will help you and your creditors develop a mutually agreed repayment plan that suits all parties. It’s important to note that you can only file up to one consumer proposal at a time, so you must complete the initial proposal before you proceed.