Consumer Proposal

FILE FOR A CONSUMER PROPOSAL IN OTTAWA, GATINEAU, LAVAL AND BEYOND

In the event of insolvency, reach out to Bernier & Associates for help: our agency handles many consumer proposal files in Ottawa, Gatineau or in our other offices. A consumer proposal is an offer you make to your creditors to settle your debt for less than the full amount you owe. No matter what your situation is, we will provide you with professional support to help you get out of debt once and for all.

What Is a Consumer Proposal?

A consumer proposal is a procedure under the Bankruptcy and Insolvency Act by which you make an offer to your creditors to settle your debts.

It has a number of characteristics and applies only in certain cases:

Total amount of debts: The total debt does not exceed $250,000 and excludes the mortgage on the principal residence.
Nature of debts: A consumer proposal applies to consumer debts like loans, credit cards, or lines of credit.
Maximum duration: Its duration may not exceed a period of 5 years.
Possibility of joint proposal: A consumer proposal may be joint, as long as the debts are substantially the same.
Payment options: It may be a monthly payment or lump sum, the sale of an asset or a combination thereof.

You can rely on Bernier & Associates to get out of over-indebtedness. Our competent trustees will advise if a consumer proposal is appropriate for your situation, help you draft it, or will suggest a solution better suited to your needs.

What Are the Advantages of a Consumer Proposal?

A consumer proposal allows you to settle your debts without filing for bankruptcy and can help you reduce your debts by up to 70 percent. You also get to keep your assets, including your home, car and registered retirement savings plan (RRSP). Additionally, any legal proceedings or wage garnishments are suspended, and your employer cannot terminate your employment. Moreover, the reference to the credit bureau is deleted 3 years after the proposal has been fully implemented.

In the event your consumer proposal is refused, rest assured that personal bankruptcy is not automatic. The process is simplified, and there is no meeting of creditors unless requested.

If it applies to your situation, a consumer proposal may allow you to turn your finances around while avoiding personal bankruptcy. In addition, your creditors usually prefer to recover part of what they are owed instead of seeing you declare bankruptcy.

Can a Consumer Proposal Be Cancelled?

When your consumer proposal is accepted by your creditors, you agree to repay them according to the conditions approved by all parties.

If you do not respect this commitment, your consumer proposal may be cancelled, in cases such as:

Non-payment: Non-payment of the amounts agreed in the proposal may lead to its cancellation. Payments over three months late result in the proposal's automatic cancellation.
Non-compliance with the terms and conditions: If you do not respect the terms agreed upon in the proposal; this could lead to its cancellation;
Changes to your financial situation: If your financial situation changes significantly, the agreement may be revised. You can also pay off your debt earlier than expected without interest or penalties.
Non-compliance with legal requirements: A consumer proposal must comply with the legal requirements in force. Failure to comply with these requirements may result in cancellation.

Every situation is unique and requires a personalized approach. Make informed decisions with the help of our consumer proposal professionals in Ottawa and Gatineau.

Experiencing Financial Difficulties? We Are Here to Help!

If you need help escaping the vicious circle of debt, do not hesitate to contact one of our counsellors. At Bernier & Associates, we guide you through the development of a consumer proposal in Ottawa or one of our agencies in Ontario and Quebec. Come and meet us, and say goodbye to your debts.

What Is the Process for a Consumer Proposal?

This process is important and requires the support of a licensed insolvency trustee, who, step by step, guides you to reach a favourable agreement with your creditors.

Making an appointment
Even if discussing your financial situation feels overwhelming, don't hesitate to schedule a meeting with a licensed insolvency trustee. We'll welcome you with respect, confidentiality and without judgment.
First meeting with a counsellor
Your counsellor will review your situation, including the amount and type of debts, creditors, assets, monthly budget, ability to repay, etc.
If a consumer proposal is the best solution for you, you will prepare together a reasonable settlement offer for your creditors that takes into account your monthly payment capacity.
Signing documents and filing the consumer proposal
Once the documents are signed, your counsellor will register them with the Office of the Superintendent of Bankruptcy. This immediately stops collection calls and legal actions. From now on, your counsellor handles all communications and negotiations with your creditors.
Notice to creditors and acceptance of the proposal
Your advisor will inform your creditors of your offer. They will have 45 days to respond. If at least 25% of your creditors request it, your counsellor will organize a negotiation meeting and a collective vote to accept or refuse the agreement. Otherwise, your consumer proposal will be considered accepted.
First consultation meeting
In this session, you review your complete financial picture with your advisor. Together, you'll identify the causes of your debt and set strategies to move forward: budgeting tools, spending priorities, and tracking methods. The goal is to give you the tools and knowledge to avoid a repeat of your financial situation.
Second consultation meeting
Your counsellor helps you apply the tools discussed earlier, including budgeting apps, custom repayment plans, or saving strategies. These tools aim to help you build lasting financial independence.
Debt Release
We will issue an official certificate once you complete all payments and obligations. This certificate confirms your legal release from the debt and signals a new financial beginning.

If you're unsure whether this process is right for you, talk with us. We'll help you find a solution that works for you.

Everything You Need to Know About Consumer Proposals

Want to learn more about consumer proposals? We provide resources to help you understand all its ins and outs. Visit our blog for practical articles and helpful tips from our team.