Case: My situation has changed, and I need a second chance or a fresh start.
Are you familiar with Murphy’s Law? It is summarized by: “Anything that can go wrong will go wrong, and at the worst possible time.” Or perhaps you’ve heard the saying “Misfortunes never come singly”? Sometimes we don’t control the challenges that life throws our way. , This can also be true for those who have made a consumer proposal or currently have one in effect.
For example, illness may have led to financial difficulties requiring you to file a consumer proposal in order to get out of debt. What happens if, for instance, you lose your job while the consumer proposal is ongoing? Will you be able to continue the payments? Is it a sign that bankruptcy is inevitable?
We have several tools at our disposal.
Reinstating the Proposal
Your new financial reality did not allow you to make your payments, and your consumer proposal was cancelled for non-payment? If your financial difficulties are temporary and you wish to continue the proposal at the amount negotiated with creditors, we can help.
We can initiate a process to reinstate your proposal within 30 days from the date of annulment . If you agree on a plan allowing you to catch up on your arrears, this process will be possible for you.
If you have exceeded this period, we can assist you in applying to the court for the reinstatement of your proposal. In some cases, it may even grant accommodations on the payments of the proposal, as long as it concludes within a 5-year period, as provided by the Law.
Making a New Proposal
When your consumer proposal has been cancelled after some time or if you have new debts, be aware that it is possible to ask the court for permission to file a new proposal. This is possible even thow the general rule is that one cannot make a proposal containing debts that have already been part of another proposal. In addition to regaining the protection of the law against legal proceedings and being able to include new debts, filling a new proposal could prevent you from going bankrupt.
Making an Amended Proposal
When your situation is so serious and you are contemplating the possibility of bankruptcy, it might be possible to avoid bankruptcy by offering a revised amount of your current consumer proposal to your creditors. The creditors will have to decide on this modified proposal during a 45-day voting period. This process can help someone who has had a significant drop in income, but whose income still allows for monthly payments, thus maintaining the modified proposal in effect. However, certain risks exist and this is still a last-resort option before considering bankruptcy. It is important to discuss the risks with a Licensed Insolvency Trustee who is best suited to inform you regarding this matter.
It’s Never Too Late to Consult Us
So, need a second chance? The proposal might still be your first choice!
Bankruptcy is not always the solution, and you can count on our Licensed Insolvency Trustees to provide you with impartial and independent advice. Do not hesitate to contact us for a consultation.
For a future beyond debt, consult a trustee by visiting ginsberg-gingras.com or calling (800) 567-1905. The first consultation is in person or virtual and comes with no obligations.