Services for Individuals

Proposal to Creditors

Proposal to creditors are more and more popular as a way to solve financial problems and recover financial health. It allows keeping certain assets that would otherwise be seized in a bankruptcy by offering payment over a period of time that cannot exceed five years. It may be the only solution for some individuals like professionals when a bankruptcy may create a risk of losing their right to practice. When considering a proposal, we will help you establish the amounts that you can realistically offer your creditors and the best time frame for your proposal. Once filed we send the documents to stop seizures and legal proceedings flied against you, forward notices of your proposal to all your creditors and pay the amounts to be distributed to them over time until completion of your proposal. Each file is unique but with our experience and expertise the vast majority of proposals filed through our office have been accepted by the creditors and carried through successfully by the once overburdened debtor.

Two types of Proposals to creditors may be filed by individuals :

  • Consumer proposals : this alternative may only be considered when debts excluding hypothecs on the main residence do not exceed $ 250 000. A refusal of the proposal by creditors will not lead to an automatic bankruptcy and the administration of this type of proposal is more simple than those filed by corporations.
  • Proposal under Section III Part I of the Bankruptcy and Insolvency Act :this type of proposal is ruled by the same dispositions than those registered by corporations. It is suited for individuals not meeting the criteria for a consumer proposal. It is often filed by professionals or by individuals who owe a substantial amount of fiscal debts (Income taxes, GST, QST, DAS) often due to the personal liability for the obligations of business that went sour.