Should I File A Consumer Proposal Now Or After Judgement?

When dealing with financial predicaments, one question often arises: “Should I File A Consumer Proposal Now Or After Judgement?” This article aims to provide a detailed analysis and practical insights to help you make an informed decision.

Understanding Consumer Proposals

Before diving deeper into the main issue, it’s essential to understand what a consumer proposal is. A consumer proposal refers to a legally binding agreement drafted by a licensed consumer proposal administrator between you and your creditors. It outlines a plan to pay back a portion of your debts over a specified period.

The Implications of a Pending Judgement

A judgement pending against you implies that your creditor(s) have taken legal action due to outstanding debts. This situation can lead to wage garnishment, among other financial repercussions.

The Timing: Before or After Judgement?

Filing Before Judgement

The most significant advantage of filing your consumer proposal before the judgement is the “stay of proceedings” that comes into effect. This provision prevents creditors from taking any further legal action against you.

Stay of Proceedings


“In most cases, if you know that a judgement will be registered against you in the near future, it is probably prudent to file the consumer proposal now.” – Financial Expert


Filing After Judgement

On the other hand, even if you decide to wait until after the judgement, the filing of a consumer proposal can still halt most judgments already in progress. This means if your wages are already being garnished, filing a consumer proposal can stop it.

Key Differences

Before Judgement / After Judgement
Prevents wage garnishment / Halts ongoing wage garnishment
Prevents further legal actions / Stops judgments in progress

Consult a Licensed Consumer Proposal Administrator

Regardless of your decision, it’s crucial to seek advice from a licensed consumer proposal administrator. They can provide detailed information tailored to your specific circumstances.

What To Expect After Filing a Consumer Proposal

Once you’ve filed a consumer proposal, your financial obligations will change. You’ll be required to adhere to the repayment plan outlined in the proposal.

Consequences of Not Adhering to the Consumer Proposal

Failure to comply with the terms of your consumer proposal can lead to severe consequences, including the resumption of garnishment and other legal actions by your creditors.

Final Thoughts

So, “Should I File A Consumer Proposal Now Or After Judgement?” The answer depends on your specific situation. However, it’s generally advisable to file before a judgement to avoid potential wage garnishments or other legal actions.

Remember, it’s always best to seek professional advice when dealing with financial matters as complex as consumer proposals and judgements.

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