Creditors Vote on the Proposal

Creditors Must Vote to Accept Your Debt Proposal

When you file a consumer proposal, your creditors are informed promptly.

From there, they have a period of 45 days to reply with their voting results.

This results in a waiting period for both you and your account’s trustee.

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There are options for your creditors, including:


  • Accepting the proposal terms and arrangements.
  • Rejecting the proposal terms and arrangements.
  • Accepting the proposal provided you adjust the terms according to their wishes.
  • Provide you with a proof of claim but not actually vote yay or nay on your proposal.
  • Fail to vote entirely and not actually submit to you a proof of claim.


Your account administrator is empowered to speak with your creditors to provide them with a reminder to submit a proof of claim.

The administrator may also ask them to provide their votes.

However, the administrator is precluded from compelling to vote in a certain manner.

Given their fiduciary responsibility as a court officer, the administrator is effectively an impartial party to your arrangements.

Voting Outcomes

Once the 45-day waiting period comes to a close, if the majority of your creditors agree to the terms (and provided there aren’t any objections), there is another fifteen-day waiting period.

After this time, assuming there are no objections to the bankruptcy, your proceedings move to the next step.

Provided that more than a quarter of your creditors (based on the amounts owing) wish to reject or make changes to your proposal, your administrator is compelled to schedule a Meeting of Creditors.

During this meeting, arrangements for an agreement can be reached between the majority creditors who issued votes on the proposal.

During the negotiation process, your administrator will guide you on the best course of action.

It could be that you must increase the offer for payment such that they accept the arrangements.

There are two possible results for the first Meeting of Creditors after you file your consumer proposal.

The first is that your arrangement is accepted by the creditors and you can proceed with the proposal.

The second option is rejection where the proposal stops in its tracks.

More often than not, creditors will accept your consumer proposal.

Generally, even in rejection situations, creditors will suggest an alternative amount.

To learn more about the nuances of dealing with creditors relating to your consumer proposal, speak to a Licensed Insolvency Trustee in your area.

These professionals can facilitate the success of your consumer proposal.

Information on Consumer Proposals

Consumer Proposals in Canada – An Alternative to Bankruptcy
What is a Consumer Proposal?
What are the Benefits of a Consumer Proposal?
What are the Steps in a Proposal?
What Debts Are Erased in a Consumer Proposal?
Is There Life After a Proposal?
Consumer Proposal Eligibility
How to Amend a Consumer Proposal

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