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Did you make a consumer proposal to try and settle your debt but made late monthly payments three times, thereby resulting in it being cancelled? If so, the licensed insolvency trustees (LIT) at Bernier & Associates in Ottawa can help. They know how trying this situation can be and are committed to getting you the help you need. Here’s an overview of the three options available to you if your consumer proposal is cancelled.


Reinstate your proposal

If it’s been less than 30 days since your proposal was cancelled, you can contact your licensed insolvency trustee and ask them to take the necessary steps to have it reinstated. However, you’ll have to prove that you’ll be able to make the payments and may also be required to pay off any late fees before proceeding.

If it’s been more than 30 days since your proposal was cancelled, you can go directly to court and request that it be reinstated. However, this process can be complex. Therefore, you may want to enlist the help of a lawyer and your LIT.


File for bankruptcy

If you’re unable to have your consumer proposal reinstated, it may be in your best interest to declare personal bankruptcy. Doing so will protect you from creditors and allow you to eliminate a significant portion of your debt. However, it’s best to speak with your LIT to determine if this is the best option for you.


Negotiate with your creditors

Your creditors will likely contact you soon after your proposal has been cancelled and ask you to pay off any outstanding debt. When they reach out, you can try to negotiate with them to reduce your debt or interest charges. However, it’s important to note that you may be required to pay any retroactive interest dating back to when you first filed your proposal. This option can be tiring and time-consuming.

Do you want to eliminate your debt and limit the stress caused by a cancelled consumer proposal? At Bernier & Associates in Ottawa, we have the expertise to review your situation and determine the best course of action. Contact our licensed insolvency trustees today.


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