When you’re outstanding debts is not more than $250000 then the best option would be consumer proposal. You should read this article below to know the overall consumer proposal pros and cons.
If you have already made up your mind to proceed with consumer proposal, then you can look for local lawyers based on your zip code in http://nolo.com/ . A consumer proposal is a legal process where a percentage of the remaining debts would be calculated to be paid to the creditors.
When the proposal is finalized then you can either choose to pay the total amount, or you can pay on a monthly basis before five years, or you can pay part of the amount leaving the rest to be paid on a monthly basis.
The ultimate goal is to come to a settlement with your creditors which will help you to overcome bankruptcy and make sure your creditors would receive the money back which would be higher than the money received through bankruptcy.
If you are in confusion on whether consumer proposal is the right option for you, then you should set up a meeting with debt advisors to have a discussion on your personal and financial situations.
They will do the evaluation of your financial situation and will discuss with you the advantages and disadvantages of the options that would solve all your financial issues.
The proposal will pause the proceedings and stop any legal actions, which have been commenced. When you are going for the proposal, you can have your assets like house, car and income tax returns.
When you go ahead in filing a consumer proposal, then you must provide the entire financial disclosures, which includes the assets, liabilities and the sources of income. You should spend time in attending meeting with the creditors when there is a necessity. Many counselors ask for counseling sessions and sometimes may advise you for a change of your residential address.
The consumer proposal company will discuss the financial situation, and a proposal will be prepared which would be given to the trustee you choose.
The trustee will send the proposal to the Office of the Superintendent of Bankruptcy, and the proposal will be sent to the creditors who are unsecured. The report of your current situation and the reason for financial problems will be included in the proposal. The creditors can either accept or deny the proposal within 45 days.
After all these procedures many creditors would not be ready to abide with the proposal, and they would return with an offer for a better amount, or they may enquire for further information. Though the proposals are not immediately accepted many proposals will get negotiated, and after the disclosure of documents, most of the proposals gets accepted. That being said you may also attend a creditor meeting.
The meeting should be requested within 45 days from the filing of the proposal. Within the same timeframe, the OSB can instruct for a trustee meeting at any time with the creditors.