You may qualify for a consumer proposal in Winnipeg, and throughout Manitoba, if you:
are not currently in a bankruptcy;
have debts of $1,000 or greater;
are unable to make your regular payments as they become due; or
would be unable to pay off your debts even if all of the assets you are not entitled to keep are sold
A consumer proposal is a federally-legislated process that allows the Trustee to offer your creditors a settlement that stops the accumulation of interest and pays them a percentage of your debt to them — this can be the majority of your balance owing! A proposal offers a fresh start without the need to go bankrupt!
Companies, partnerships, and businesses may also file bankruptcies or consumer proposals if they meet the requirements listed above.
Any unsecured creditor that you owe more than $1,000 to is entitled to try to force you into bankruptcy. In order to do this, the creditor is required to prove that you have committed what is known as "an act of bankruptcy", which includes not paying your bills by their due date. A court will review the creditors' request and, if it agrees with the creditor, issues an order which places you into bankruptcy.
The steps to make a consumer proposal in Winnipeg and throughout Manitoba are:
The Trustee will work with you to prepare a Statement of Affairs, listing your assets, creditors, income, expenses and other pertinent information
We will review your finances and the Trustee will help you to prepare a proposal to your creditors
After your proposal has been made, most creditors will no longer be able to attempt collection of your accounts with them
Your payments are made to the Trustee, who will divide and distribute the payments to creditors as required by law
You will be required to attend two individual financial counselling sessions, held privately
Once the terms of your consumer proposal have been met, you will no longer be responsible for the debts covered by the proposal, and you will receive a document stating that the proposal has been completed
Creditors have no legal obligation, nor a requirement to make alternative payment arrangements with you unless you file a consumer proposal. Also, unless you have a consumer proposal, your creditors can end any special arrangements that you have, at their convenience with little or no notification to you. A consumer proposal usually solves this problem.
Our consumer proposal fees are determined by law and by our professional code of ethics.
The fees in a consumer proposal are paid from the monthly payments offered by you to your creditors under the terms of your consumer proposal.
Our Licensed Insolvency Trustees and Proposal Administrators are familiar with Canadian consumer proposal and bankruptcy law.
» Learn more about the implications of filing a Consumer Proposal.
Grant Thornton Limited
94 Commerce Drive
Winnipeg Manitoba R3P 0Z3