Missed consumer proposal payments?

Navigating the Consequence of Missed Consumer Proposal Payments

Falling behind on consumer proposal payments can be a stressful situation. It’s important to understand your options and potential strategies to handle this scenario.

Consumer Proposal: An Overview

A consumer proposal is a legally binding agreement orchestrated by a licensed insolvency trustee between you and your creditors to repay a percentage of what you owe. It serves as an alternative to personal bankruptcy, allowing you to retain your assets while potentially reducing your total debt.

If you’re unable to make these payments, your proposal may be annulled, leaving you unprotected from creditors. Fortunately, there are several options available to you in such a situation.

Consequences of Missed Payments

Annulment of Proposal

If you miss three payments for your consumer proposal, it is automatically annulled. This means your agreement with your creditors ends, and they can pursue you for the full amount of debt owed.

Loss of Creditor Protection

When your consumer proposal is annulled, you lose the legal protection it provided against your creditors. They are free to take legal action to recover their debts, including wage garnishment and asset seizure.

Options Following Annulment

Should your consumer proposal be annulled, you have several options:

Revival of Consumer Proposal

Your trustee can send a notification of revival within 30 days of the default. To do this, you must convince them that your missed payment was a temporary glitch and that you can meet the terms moving forward.

Filing for Personal Bankruptcy

If your financial circumstances have significantly worsened and you can’t make the payments, you may consider filing for personal bankruptcy. This reinstates creditor protection you lost when your proposal was annulled.

Alternative Solutions

If neither of the above options suits your needs, your trustee may be able to suggest another solution.

Strategy Review and Next Steps

If you find yourself facing an annulled consumer proposal, it’s time to reevaluate your financial strategy. Consulting with your trustee is vital to understand your options and decide on the best course of action.


Reach out to your trustee for a free, no-obligation consultation to discuss your situation and next steps. They are there to help you navigate this challenging financial landscape.


Missing consumer proposal payments isn’t the end of the world. With the right guidance and strategy, you can recover and get back on track. Consult with your trustee, understand your options, and make informed decisions about your financial future.

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