A consumer proposal, in Calgary or Edmonton, Alberta, is a legal process which enables you to make an offer to your creditors to modify your payments or to pay them a percentage of what you owe. A proposal allows you a fresh start without going bankrupt.
You can make a proposal (or file bankruptcy) if you:
are not presently in bankruptcy
owe at least $1,000
are not able to meet your regular payments as they become due; or
would not be able to pay all of your debts if all of the assets you are not allowed to keep are sold
Your company, partnership, or business may also file bankruptcy or make a proposal if it meets the above requirements.
However, any unsecured creditor to whom you owe more than $1,000 could try to force you into bankruptcy. In this case, the creditor must prove that you have committed an act of bankruptcy, such as not paying your bills as they came due. The court reviews the facts and, if the application is successful, issues a bankruptcy order which places you in bankruptcy by the creditor.
Briefly the steps to making a consumer proposal in Alberta are:
The Trustee will help you prepare a Statement of Affairs which lists all of your assets, creditors, income, expenses and other pertinent information
Your finances will be reviewed and the Trustee will assist you in preparing a proposal to your creditors
After you make your proposal, most creditors are no longer able to pursue you for collection of their accounts
Public utilities may not discontinue service
You make your payments to the Trustee who will pay your creditors until the terms of your proposal have been met
You will be required to attend two financial counselling sessions
Once you have met the terms of your proposal, you will receive a document stating that you completed your proposal and you will have no further obligation for the debts covered in your proposal
Creditors are not required nor do they have any legal obligation to arrange alternative payment terms with you. Furthermore, the creditor can end special arrangements at any time with little or no notification. Also, this option may not stop collection agents from calling.
Our qualified professional Trustees and Administrators are familiar with all aspects of Canadian bankruptcy law.
Read more about the Benefits of Consumer Proposals (PDF).
To speak to someone now call us at 310-8888 for a free, no obligation, confidential consultation.
© 2011 Grant Thornton Alger Inc. All rights reserved Consumer Proposal in Calgary, Edmonton, Alberta
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