Consumer Proposals

What is a consumer proposal? A consumer proposal is a formal, legally binding process that is administered by a Licensed Insolvency Trustee (LIT). In our case it would be Jean Lazard. Jean & his team would work with you to develop a “consumer proposal” which is an offer to pay creditors a percentage of what is owed to them, or extend the time you have to pay off the debts, or both. The term of a consumer proposal can’t be more than 60 months. Note that we handle consumer proposals in Kingston, Brockville, Cornwall and Hawkesbury.

Consumer ProposalsConsumer proposals – How are payments to creditors made?

All Payments, under the consumer proposal are made through the LIT, and the LIT uses that money to pay each of your creditors. In this case as your LIT, Jean would distribute the payments directly to your creditors.

When is a consumer proposal appropriate?

The only way to find this out is to speak with Jean to see if a consumer proposal (or even a different option) is the right choice for you, set up a meeting by calling us or filling out the form on this page. The only way to give the proper advice is to understand your particular situation.

If you decide that a consumer proposal is the right way to go Jean will work with you to develop a proposal that works for both you and your creditors.

Consumer proposals – How they work

  1. Jean’s office will file the proposal with the Office of the Superintendent of Bankruptcy.
  2. Once your proposal is filed, you stop making payments directly to your unsecured creditors. In addition, if your creditors are collecting your salary (garnishing your wages) or have filed lawsuits against you, these actions are stopped.
  3. Jean’s office will submit the proposal to your creditors. The proposal will include a report on your personal situation and the causes of your financial difficulties.
  4. Creditors then have 45 days to either accept or reject the proposal. They can also do this either prior to or at the meeting of creditors, if one is held.

To find out if a consumer proposal is the right decision for you, make your free call to Licensed Insolvency Trustee Jean Lazard today or fill out the form on this page and Jean will get back to you.

Video Summary

In this video a Licensed Insolvency Trustee explains to Mary and Paul that a consumer proposal might be the way to resolve their financial situation. The trustee tells them how a consumer proposal is different from bankruptcy and what they need to do.