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Consumer Proposal

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Consumer Proposals & Your Credit History

Rebuilding Your Credit After A Consumer Proposal For many insolvent Canadians, the burden of a high debt-load is often made worse by long-term implications arising from poor credit history. Having “good credit” is often just as much a priority as getting out of debt. It is important to remember which should come first. It will [...]

I Need A Proposal Or Bankruptcy To Help Me With Debt But I Can Pay My Visa Account To Keep A Credit Card Right ?

This is a regular question we get when we meet with people to review their financial situation. Some people are disappointed with our answer and some people are happy when we can figure out a way. Let’s take a look at some of the factors that we have to consider to answer this question; We [...]

Will Declaring Bankruptcy or Filing a Consumer Proposal Harm My Credit Rating?

I’ve Been Told That I Should Not Use Bankruptcy Or A Proposal Because They Will Harm My Credit Rating. Is This True?   People in debt don’t use a proposal or go bankrupt because they want to, they use one of these options because they have to. They have no reasonable alternative to assist them [...]

How Often Do Consumer Proposals Get Rejected And What Happens If They Are?

Consumer proposals get accepted in our office “eventually” at a rate of 95% or better. This means a combination of acceptance by creditors votes by the initial vote 45 days from the filing of the proposal PLUS acceptance of proposals that are initially rejected but are accepted after they are negotiated and/or amended (usually by [...]

Consumer Proposals vs Bankruptcy – What Is The Difference?

Bankruptcy is just one form of debt resolution, and it is typically a last resort. Knowing your options can save you not only thousands of dollars but also give you peace of mind about your financial future. At Goth & Company, we want to ensure you have all the information you need to make the [...]

How Often Do Consumer Proposals Get Accepted And What Happens To Make Them Get Accepted ?

A consumer proposal offered to creditors has to be approved by a creditors vote. A vote needs to achieve a majority in value (more than 50%) of creditors voting in favour of the proposal to pass. When a proposal passes, it forces all general unsecured creditors(with minor exceptions)to settle their claims against the debtor for [...]

2019-05-31T22:20:52+00:00Consumer Proposal|

Do I Have To Disclose All Debts In A Proposal Or Bankruptcy?

When a consumer proposal or bankruptcy starts there is immediate protection from the collection action of all unsecured creditors against the debtor. To get this protection, certain things have to be provided to the Licensed Insolvency Trustee (“LIT”) so that necessary paperwork can be prepared, signed by the debtor and the LIT, and submitted to [...]

2019-05-31T22:19:54+00:00Bankruptcy, Consumer Proposal|

Can I Make A Consumer Proposal To My Creditors By Myself?

No, you can’t. But let’s make sure we are both talking about the same thing. If you ask a Licensed Insolvency Trustee (“LIT”) what a consumer proposal is, the LIT will tell you that it is a specific process according to the Bankruptcy and Insolvency Act (“BIA”) where an individual can offer a compromise to [...]

2019-05-31T22:19:46+00:00Consumer Proposal|

Can Bankruptcy Or A Proposal Deal With Tax Debt?

The simple answer to this is yes. If you go bankrupt or make a proposal that is accepted by creditors, the tax debt is included in either process in normal cases. When Can't It Be Included? Here are some of the unusual cases where further action or collection can be taken by CRA; If the [...]

2019-05-31T22:19:40+00:00Bankruptcy, Consumer Proposal|