What is a Consumer Proposal Administrator?
In order to file a consumer proposal, you must use a consumer proposal administrator. A consumer proposal administrator is a licensed expert that is regulated to administer to consumer proposals in Canada.
A consumer proposal is an agreement between a debtor and his/her creditors that is legally binding. The debtor will make an offer to repay a portion of their debt, and they must use an administrator to file this proposal.
How Can a Consumer Proposal Administrator Help Me?
A consumer proposal administrator will help you examine your options and explain if a proposal is the right debt relief choice for your situation. All of our administrators on this site offer a no risk, free confidential evaluation.
If you decide to proceed with making a proposal, your consumer proposal administrator will guide you through the entire process. Your consumer proposal administrator will work with you to draft a proposal that your creditors will find attractive and are almost guaranteed to accept.
During your proposal, you will attend two counselling sessions with your administrator. These counselling sessions will give you financial management skills to give you strong money management skills for the future.
If a debtor files a consumer proposal they will receive a stay of proceedings that will protect them from all collection activities.
How Does a Consumer Proposal Work?
Your proposal administrator will examine your debts and help you structure your proposal. Once your proposal has been signed, your administrator will file the paperwork with the OSB and notify your creditors. Once your proposal paperwork has been filed, you will stop paying on your unsecured debts, although your creditors have 45 days to vote on the proposal. In some cases your proposal will vote to reject your proposal, although this is incredibly rare.
Almost all proposals are accepted because the main rule of a proposal is the creditors must receive more funds than if the debtor went bankrupt.
Your administrator will gather all of the votes from your creditors. At the end of the 45 day period the Trustee will count all of the votes.