What happens if the Consumer Proposal is rejected?
If the creditors reject the Consumer Proposal, the debtor will no longer be protected by the Act and the creditors will again be able to take steps to recover their debts. The debtor cannot file another Consumer Proposal. At that time, the debtor may wish to consider other alternatives, with the assistance of the Trustee.
Counselling
The Trustee will arrange for two counselling sessions during the Consumer Proposal. The counselling will help you understand the cause(s) of your financial difficulty, which sometimes is non-budgetary. These sessions will also provide information to assist you in managing your financial affairs in the future. You must attend both of the counselling sessions. Additional counselling is available if you need more assistance.
Payments
Once the Consumer Proposal is accepted, the debtor will make the payments to the Trustee, as provided for in the Consumer Proposal. This may involve a one-time lump sum payment or monthly payments for a period of no more than five years or a combination of both.
Dividend payments will be made by the Trustee to the creditors in accordance with the terms of the Consumer Proposal.
Once all payments under the Consumer Proposal have been made, the Trustee will issue a certificate which shows that the terms of the Consumer Proposal have been completed. Any balance still owing to the unsecured creditors is legally forgiven.
