Who Can File A Consumer Proposal?

Who Can File – General Criteria

You can file a consumer proposal if you’re unable to pay your debts as they become due, subject to the following conditions:

• You owe at least $1,000.
• Your total debts do not exceed $250,000. This $250,000 threshold excludes debts secured against your principal residence (e.g., mortgage or home equity line of credit). If your debts exceed $250,000, you will need to file what is called a Division I proposal.
• If you’ve previously filed a consumer proposal, you need to have completed it. If you defaulted on a previous consumer proposal resulting in its annulment, you won’t be eligible to file a new consumer proposal unless you obtain approval from the Bankruptcy Court to do so.

Can a Bankrupt File a Consumer Proposal?

It should be noted that if you filed for bankruptcy and are an undischarged bankrupt, you can still file a consumer proposal – it would be made to the creditors in your bankruptcy proceedings. If it’s approved by your creditors, then your bankruptcy will be annulled.

However, in the event that you default on this “in-bankruptcy” proposal, your proposal will be annulled and you will be deemed to have re-filed your bankruptcy. That is, your bankruptcy proceedings will restart the day your proposal was annulled.

Assessing Your Eligibility

When you meet with us for your free no obligation consultation, we’ll perform the following assessment to determine your eligibility:

• We’ll review your income, assets and debts to evaluate your financial position.
• We’ll help you prepare a household budget to determine if you have sufficient cash flow to make proposal payments.
• With your permission, we’ll perform a search of the Office of the Superintendent of Bankruptcy’s database to see if you’ve previously filed a bankruptcy or a consumer proposal.

Our Promise To You