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Create a Consumer Proposal to Help Reduce Your Debt

Interested in consolidating your debt? Consumer proposals can help. Salyzyn & Associates Limited can assist you in debt consolidation by helping you create a consumer proposal. A consumer proposal is like a compromise with your creditors guided by the Canadian Bankruptcy and Insolvency Act. You may want to offer a compromise for the total amount of your debt or ask for an extension on time you need to pay your debts in full. You could also choose to cash certain assets to pay a portion or all of your debts rather than dealing with monthly payments.


How a Licensed Insolvency Trustee Can Help
At Salyzyn & Associates Limited, one of our Licensed Insolvency Trustees can assist you with your consumer proposal, making sure you provide a fair offer to your creditors. By filing a consumer proposal, you can stop unwanted calls from creditors, stop your wages from being garnished, and give you time to make arrangements to pay your creditors what you can afford.

Frequently Asked Questions About Consumer Proposals

What is a consumer proposal?

Made by a debtor to their creditors, a consumer proposal is a formal offer to settle debts on certain debt reduction terms that the debtor can afford and which the creditors are willing to accept.

Who can make a consumer proposal?

Any consumer debtor can file a consumer proposal if they are insolvent and have debts that are less than $250,000. This excludes their home mortgage.

Any consumer debtor can file a consumer proposal if they are insolvent and have debts that are less than $250,000. This excludes their home mortgage.

First, decide on what type of offer you plan to make to your creditors. Next, meet with one of our trustees to discuss the offer and see if it is fair. Our trustees can then help you prepare the paperwork and lodge them with the Federal Government.

Will my creditors stop calling me?

Yes. By law, actions against you, including creditor calls, will stop once your proposal is filed. Other actions that will cease include garnishees, judgements, and other civil legal actions.

How long must I wait to see if my proposal has been accepted?

You may be waiting up to 45 days just to see if your creditors accept your offer. Your creditors may call a meeting to discuss the proposal and then vote to accept or reject it. If the proposed offer is accepted, you will have to wait an additional 15 days to see if a creditor or other interested party wishes a bankruptcy court to review your offer for its reasonableness. In all, the whole process requires about 60 days to complete.

To whom do I make my proposal payments?

When your proposal has been accepted, you will make payments to our office. Salyzyn & Associates Limited is an officer of the court and therefore we can administer your funds and distribute them evenly to your creditors.

What happens if my proposal is rejected?

If the majority of your creditors or the court rejects your consumer proposal, you will have to start over. Your creditors’ rights are revived and the calls and garnishments may start again.

What happens if I cannot fulfill the terms of my proposal?

Making a debt reduction proposal that is accepted by the majority of your creditors must be paid and your promises kept. However, if you cannot meet the terms of your proposal, you may wish to amend them. If you cannot amend and fail to meet the terms, your proposal is annulled and your creditors are free to start legal action once more.

What happens once my proposal has been completed?

Once your proposal has been completed, our office will send you a “Certificate of Compliance” as proof. Any remaining balances owed to your creditors are extinguished. Every consumer proposal is different, however, there may be some exceptions to your debt reduction solution. We can discuss these exceptions when you meet with us.

How will the proposal affect my credit rating?

A consumer proposal will give you an R7 credit rating at the credit bureau for 3 years after the proposal is completed. Attending 2 financial counselling sessions is required during your proposal. These sessions will teach you how to use credit wisely for future expenses.

These debt reduction solutions along with financial management counselling or insolvency counselling are intended to get you out and keep you out of debt. If you’re interested in creating a consumer proposal, call Salyzyn & Associates Limited. We have offices in Dartmouth, Bedford, Kentville, and Enfield (non-resident) and serve clients in Greater Halifax, the Annapolis Valley, and Nova Scotia.

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