What is a Proposal?
A proposal is a legal process that enables you to make an offer to your creditors to modify your payments or to pay them a percentage of what you owe. This allows a fresh start without declaring bankruptcy.
Briefly the steps are:
Choose a Bankruptcy Trustee.
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.
In most cases, after you make your proposal, creditors are not allowed able to pursue you for further payments.
Public utilities are not allowed to 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 have 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 mentioned in your proposal.
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This site provides free information about personal bankruptcy in Canada and personal bankruptcy alternatives in Canada.
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