Can A Consumer Proposal Be Rejected?
“Can a consumer proposal be rejected?” Yes, a consumer proposal can be rejected by your creditors. So it’s important that you understand how a consumer proposal is approved or rejected by your creditors.
How a Consumer Proposal Can Be Rejected or Approved
- Your proposal will be sent to your creditors for their review. A document called a voting letter, which allows a creditor to indicate its vote, is also sent. Creditors are required to file with your Trustee a proof of claim and completed voting letter before their claim can be registered for voting on the proposal.
- Your creditors will have 45-days to review your proposal and at the end of that 45-day review period, your Trustee will compile and review the voting letters received. There are 3 possible scenarios:
- If no voting letters were received, your creditors are “deemed” to have accepted your proposal.
- If those creditors voting “no” comprise less than 25% of the value of claims filed, the creditors are deemed to have accepted the consumer proposal.
- If those creditors voting “no” comprise more than 25 percent of the value of claims filed, your Trustee shall be required to hold a meeting of creditors. Creditors will usually vote “no” because they want more money. Therefore, a meeting of creditors would be held to discuss what the debtor would have to offer in a consumer proposal before it would be accepted by the dissenting creditor(s).
- If you agree to accept the creditors’ counter, an amended consumer proposal will be tabled at the meeting of creditors and it will be accepted at that meeting.
- On the other hand, if both you and the creditors cannot come to an agreement of terms, the proposal will be rejected at the meeting of creditors. If that happens, you can always file another consumer proposal that provides more favourable terms to the creditors. Or alternatively, you can file for personal bankruptcy.
If you want to work with a Trustee who will give you confidence and peace of mind that your consumer proposal is being dealt with in a professional manner, look no further.
Reviews of Our Services
Victor was quick to contact me and the consistent contact was amazing. Victor is really passionate about listening to my needs and it showed as his service with me was nothing short of an amazing experience. He went out of his way to meet on my sched and his attention to detail is exceptional. If yo
Victor and his team (Mary) were always extraordinarily prompt with their responses to any inquiries and went out of their way to respond to questions in detail. They were extremely helpful at all times, even after my Proposal was completed. VIctor is an excellent advocate for his client's needs and
Victor and his team were amazing. Treated us with the upmost professionalism. Answered all our questions, took care of everything and turned an unfortunate situation and made it much less stressful. I highly recommend Fong and Partners. Thank you all for your support through the process.
Working with Victor Fong was great. We just finished our consumer proposal a week ago and the entire process was quite easy. Mary was amazing at answering all my questions and accommodating me when I had any questions or concerns. Her response time was impeccable. Our initial meeting with Victor wa
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