Why Would A Consumer Proposal Be Rejected?
“Why would a consumer proposal be rejected?” The usual reason is that your creditors want more money and if you refuse to acquiesce to their counteroffer, the proposal will be rejected, as previously described.
Consumer Proposal Rejected Due to Debtor Conduct
However, another reason why a consumer proposal might be rejected by your creditors is that they found evidence of questionable conduct with respect to your financial affairs. Here are some examples:
- You brought on, or contributed to your financial situation by rash and hazardous speculations, unjustifiable extravagance in living, gambling or by culpable neglect of your business affairs.
- You put any of your creditors to unnecessary expense by a frivolous or vexatious defence to any legal action properly brought by them against you.
- You have, within the a three month period preceding the date you filed your consumer proposal, incurred unjustifiable expense by bringing a frivolous or vexatious legal action.
- You have, within the a three month period preceding the date you filed your consumer proposal, when unable to pay debts as they became due, given an undue preference to any of your creditors.
- You’ve been guilty of any fraud or fraudulent breach of trust.
- You’ve committed any offence under the Bankruptcy and Insolvency Act or any other statute in connection with your property or your consumer proposal proceedings.
Our Promise To You
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.
Contact Fong and Partners Inc., one of the 3 Best Rated Trustees in the Greater Toronto Area.