Terms And Conditions Of A Consumer Proposal

Consumer Proposal

If your debts do not exceed $250,000, a consumer proposal is a good option to seek protection from creditors. To find out if it works for you, meet attorneys at www.spergel.ca/en to discuss your financial situation with them. For more details, you can visit www.attorneys.com and submit your legal issue online.

What Is A Consumer Proposal?
As the name suggests, a consumer proposal is a legal process administered by a Licensed insolvency Trustee (or LIT). They will work with you and come up with a suitable offer that can be presented to the creditors. It can be a proposal to pay off the money lenders a small percentage of what you owe to them, or request for the time period to be extended. All the necessary payments are made through LIT who will use the money to pay each creditor.

When you file a consumer proposal, you reap benefits like:
· Interest does not get accumulated on the money from the date you file the proposal.
· You will no longer be bothered by credit companies or money lenders.
· You do not have to bear the risk of losing your home or other personal assets to repay the loan.
· The period of a consumer proposal cannot exceed 5 years, and you can pay a portion of your debt in the stipulated time. This brings back the lost confidence, and you gain control over your life and finances.

Steps Involved In Filing A Consumer Proposal:
· When you talk to an attorney, they will file a proposal with the Office of the Superintendent of Bankruptcy (OSB). This gives you the much-needed financial security as you do not have to make any direct payments to the creditors. Any lawsuits filed against you will be withdrawn.
· LIT members will submit the proposal to the money lenders. The report will include a detailed description of your current financial situation and the problems you are facing.
· It is now up to the creditors to either accept or reject the offer within 45 days from the time it was submitted.
· Usually, a meeting is conducted within 3 weeks or 21 days after the proposal has been duly submitted. It is at this point that the creditors can give their opinion on the offer before them.
· In case no meeting is conducted within 45 days after filing the offer, it is understood that they have accepted the terms of the proposal.

What happens when your proposal is accepted?
If your offer has been accepted by the creditors, you will
· Be responsible for paying off the loan amount either in small amounts or as a lump sum.
· Have to follow the conditions as stated in the proposal.
· Own your assets, provided you are loyal and pay the creditors on time.
· Have to attend two counseling sessions mandatorily.

In case of rejection
· You have a chance to make necessary amends to the proposal and resubmit it.
· Look out for other valid options that will help you solve the financial problem.
· There is a chance for you to declare bankruptcy.

While the consumer proposal is like a blanket over you in times of financial crisis, it also strictly states that you have to abide by the rules in the offer. Pay your money on time and be a responsible citizen.

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