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What is a consumer proposal?

 

What is a consumer proposal?

You are not filing for bankruptcy.

Whenever financially possible, the proposal should always be the preferred alternative to regain your financial freedom.

Protecting your assets against seizure

The consumer proposal allows you to shelter yourself from your creditors' legal proceedings. Lawyer fees, the risk of losing your possessions and much stress are therefore avoided.

You keep all of your assets

This is an important advantage if you have assets (such as a home) that are worth more than the mortgage balance.

Creditors stop calling

Once the proposal has been filed, the trustee becomes the only contact with your creditors. No more calls.

A good option for you if:

  • You are able to repay a part, but not all, of your debts;
  • You have filed for bankruptcy in the past and want to avoid the drawbacks of a second bankruptcy;
  • You have assets that are worth significantly more than the amounts due to your secured creditors;
  • You are a professional, licensed or not, and do not want your work to be affected by a bankruptcy;
  • You wish to avoid bankruptcy for personal reasons.

To learn more about our services:

 
4

steps to free yourself without filing for bankruptcy

 
4

steps to free yourself without filing for bankruptcy

  1. An initial meeting with your counsellor to discuss your options.
  2. Signing of documents and the start of the protection provided by law.
  3. On the 45th day, votes submitted by your creditors are counted.
  4. When accepted, once the final payment is made on your proposal, discharge of all your debts (some exceptions prescribed by law)
90%

of proposals filed by Jean Fortin & Associés are accepted.

 

My first appointment: What can I expect?

 

My first appointment: What can I expect?

The first appointment usually lasts about one hour. Other consultations may be required, depending on the complexity of your file or if you so require. These are free of charge.

The goal is to:

  • Determine the cause of your financial difficulties;
  • Calculate your income and expenses;
  • Determine and analyze your debts and assets;
  • Explain different possible solutions (pros and cons);
  • Offer our advice on the best solutions for you;
  • Answer all your questions.

After the first appointment, you will know what your options are, you will normally have resolved your concerns and worries and you will have answers to all your questions.

You will then be able to take the time to think about the path you wish to take.

What should I bring?*

Assets, income and investments
  • List your debts and recent account statements
  • Pay stub or bank statement
  • Alimony ( judgment or agreement )
House
  • mortgage statement
  • municipal tax bill
  • Act of purchase (if possible)
Car
  • Contract of sale / lease
  • State of recent account
  • Registrations and insurance copies

* Although it is convenient to have these documents in hand for the first meeting, they are not essential and may always be provided thereafter , as required.

Client Testimonials

Allow us to humbly express our deepest gratitude with regards to the professional services that we received.

Avoiding bankruptcy with sound advice

Before and After

Before After

Debts
   
Rent
   
Savings
   
Essentials
   
  ...

If I file a consumer proposal, will I be able to keep all of my assets ?

Yes. One of the primary goals of the consumer proposal is to allow the debtor to keep all its assets. However, the more assets you have, the more your proposal will have to offer in order for it to be interesting for the creditors. Back to questionsBack to questions

Am I discharged from all of my debts ?

The discharge from bankruptcy will erase all debts, except those listed in Section 178 of the Act which reads as follows:

  • Any fine or penalty imposed by a court in respect of an offence, or any debt arising out a recognizance or bail;
  • Any award of damages by a court in respect of bodily harm intentionally inflicted, or sexual assault, or wrongful death resulting therefrom;
  • Any debt or liability for alimony;
  • Any debt or liability under an order for the maintenance and support of a spouse or child living apart from the bankrupt;
  • Any debt or liability arising out of fraud, embezzlement, misappropriation while acting in a fiduciary capacity;
  • Any debt or liability for obtaining property by false pretences or fraudulent misrepresentation;
  • Any liability for the dividend that a creditor would have been entitled to receive on any provable claim not disclosed to the trustee;
  • Any debt or obligation in respect of a student loan guaranteed by the government where the date of bankruptcy occurred before the date on which the bankrupt ceased to be a student or within 7 years after the date on which the bankrupt ceased to be student;
  • Any debt for interest owed on any of the above noted non-dischargeable debts.
Back to questionsBack to questions

Can a consumer proposal stop legal proceedings including the seizure of my property or the garnishment of my wages ?

In declaring bankruptcy or filing a consumer proposal, you place yourself under the “protection of the law”. All seizures or judicial proceedings are stopped except for three exceptions:

  • A secured creditor may continue his proceedings (ex. a mortgage creditor), but the proceedings are limited to the repossession the assets subject to a lien (ex. mortgage, conditional sales contract);
  • A garnishment of wages for alimony or child support payments;
  • A creditor who has obtained a judgement of the Court. This is an extremely rare exception and usually involves fraud.
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Am I entitled to have or open a bank account ?

Under the Act, you have the right to have or open a personal bank account even if:

  • You are unemployed;
  • You do not have money to deposit in it immediately;
  • You have declared bankruptcy.

However, the Bank is entitled to refuse to open an account if:

  • It believes that you will use the account in an illegal or fraudulent manner;
  • You have ever engaged in illegal or fraudulent activity at a bank over the past seven years;
  • You have provided it with misleading information;
  • You do not agree that it verify the information described above;
  • You are unable to present proper identification.

If you are dissatisfied with any decision or action taken by a financial institution, you can complain to the Ombudsman for the bank. His role is to analyze the situation objectively and make corrections when necessary. Here’s how to reach them:

CIBC Bank : 1-800-308-6859

Bank of Montreal : 1-800-371-2541

Laurentian Bank : 1-800-479-1244

National Bank : 1-888-300-9004

Royal Bank : 1-800-769-2542

Scotia Bank : 1-800-785-8772

TD Bank : 1-888-361-0319

Desjardins Group : 514-281-7434

Ombudsman of the Canadian Bankers Association : 1-888-451-4519

Financial Consumer Agency of Canada (FCAC) : 1-866-461-2232

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Will I be allowed to operate my business ?

The only requirement is that a business, whose sole proprietor is in bankruptcy, must give notice to those with whom he deals that he is in personal bankruptcy. On the other hand, you no longer can be an administrator of an incorporated company so long as you are not discharged from your bankruptcy. Back to questionsBack to questions

Can I keep one or more of my credit cards ?

If you declare bankruptcy, you are required to turn in all of your credit cards, whether or not amounts are owed. On the other hand, although you are not required to turn in your credit cards if you file a proposal, the issuer will likely cancel said card if there is an amount owed or if the issuer is otherwise informed of your proposal. Back to questionsBack to questions

What happens if I used my credit cards just before filing a proposal?

It goes without saying that if, just prior to your declaring bankruptcy, you used your credit cards and made purchases knowing full well that the charges would not be paid back, such actions are not acceptable under the Act. In such cases, the Act provides that the creditors may oppose your discharge, or they may ask the court to have you pay additional amounts to the trustee or to have the debt declared non-dischargeable. This last recourse would mean that the debt would have to be paid back after your discharge from your bankruptcy, with interest. This type of behaviour is not recommended. Back to questionsBack to questions

How is my credit rating affected if I file a consumer proposal ?

Your credit rating score will be an R-9 during the period of your proposal and an R-7 for a period of three (3) years after the end of your proposal. Whereas in the case of a bankruptcy, your credit rating score will be an R-9 for six (6) years following your discharge from the bankruptcy. Most people refer to the time period as seven (7) from the date you declare bankruptcy. Back to questionsBack to questions

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