So, you’ve defaulted on a consumer proposal by not paying three months’ worth of payments, and now you’re terrified that debt collectors will begin hounding you for the unpaid debts you owe them, along with the compounded interest since the consumer proposal was initially filed.
If that sounds like you, you do have options to potentially revive an annulled consumer proposal so that you can continue paying on the consumer proposal to help you avoid bankruptcy, and decrease the harassing calls of debt collectors.
Reviving an annulled or cancelled consumer proposal is possible, but you need to act quickly by paying back the missed payments and contacting the administrator of your consumer proposal.
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What is the process of reviving an annulled consumer proposal?
In 2009, Canada approved a process for a revival of consumer proposals.
Essentially, the way to revive an annulled consumer proposal is for you (the debtor) to make all the missed payments up.
At that point, the administrator of the consumer proposal may deem is appropriate for your consumer proposal to continue and will automatically start the process to reinstate the legally-binding agreement.
Within thirty days of the annulment, the administrator of your consumer proposal will notify your creditors as well as the Office of the Superintendent of Bankruptcy that the consumer proposal will automatically be revived, unless a notice of objection is filed with the administrator.
This is the first step of the revival.
Objections and the court
At this point, each of the creditors has 60 days to file an objection.
If a creditor files an objection with the administrator, they send a notice to the debtor, the Office of the Superintendent of Bankruptcy, and the creditors who did or did not file an objection.
This halts the automatic approval of the revival of an annulled consumer proposal.
At this point, the court may still revive the consumer proposal if it deems it appropriate.
However, the court may choose to amend the proposal or may choose to annul the consumer proposal entirely.
If the court annulled the previous consumer proposals, creditors can continue their collection efforts to have their debts repaid.
Should no party object to the consumer proposal being revived, then you can continue making payments on the consumer proposal as you had previously been making.
Make sure that you do not miss any of these payments again, though.
This is a good time to sit down with your credit counselor to see if you can make amendments to your budget and to see how to live within your means.
Debt relief is just a call away
If you have money problems and need help with your debt, and are interested in making sure you can pay back your consumer proposal in a timely fashion, contact one of our debt experts at Bankruptcy Canada today.
(Don’t let the name fool you; we’re experts on all types of debt relief services and solutions, not just Bankruptcy.)
Sign up for a no-obligation initial assessment today with one of our Licensed Insolvency Trustees and be on your way to a debt-free future.
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