Consumer Proposal in Halifax to Help Reduce Your Debt

Interested in consolidating your debt in Halifax?

Consumer proposals can help. Salyzyn & Associates Limited can assist you in debt consolidation by helping you create a consumer proposal. A consumer proposal is a legal compromise with your creditors governed by the Federal Bankruptcy and Insolvency Act which your creditors vote to accept or reject. You could pay the debt in full over a maximum 5 years with no interest or may be able to only pay a portion of your debts interest free. You could also choose to cash certain assets and offer a lump sum to pay a portion or all of your debts rather than dealing with monthly payments. Proposals can be as creative as you wish.

How a Licensed Insolvency Trustee Can Help

At Salyzyn & Associates Limited, one of our Licensed Insolvency Trustees can assist you with your consumer proposal in Halifax, making sure you provide a fair offer to your creditors but something also that you can afford. By filing a consumer proposal, you will stop unwanted calls from creditors, stop your wages from being garnished, and give you time to make an arrangement to pay your creditors what you can afford interest free.

Frequently Asked Questions About Consumer Proposals

What is a consumer proposal?

A consumer proposal is a formal offer to settle debts on certain debt reduction terms that the debtor can afford and which the creditors are willing to accept.

Who can make a consumer proposal?

Any consumer debtor can file a consumer proposal if they are insolvent and have debts that are less than $250,000 excluding the mortgage on your principal home.

How do I make a consumer proposal?

First, meet with a Licensed Insolvency Trustee to discuss what offer is best for you and your creditors. The trustee will give their professional opinion on your circumstances and based on their experience. Our trustees will then prepare the legal paperwork and lodge them with the Federal Government.

Will my creditors stop calling me?

Yes. By law, actions against you, including creditor calls, will stop once your proposal is filed. Other actions that will cease include garnishees, judgements, and other civil legal actions.

How long must I wait to see if my proposal has been accepted?

You may be waiting up to 45 days just to see if your creditors accept your offer. Your creditors may request a meeting to discuss the proposal and then vote to accept or reject it. If the proposed offer is accepted, you will have to wait an additional 15 days to see if a creditor or other interested party wishes a bankruptcy court to review your offer for its reasonableness. In all, the whole process requires roughly 60 days to complete.

To whom do I make my proposal payments?

When your proposal has been accepted, you will make payments to our office which we will deposit into a trust account for your creditors. Salyzyn & Associates Limited is an officer of the court and therefore we must administer the funds and distribute them evenly to your creditors.

What happens if my proposal is rejected?

If the majority of your creditors or the court rejects your consumer proposal, the proposal has failed and you are not automatically bankrupt. You will have to start over. Your creditors’ rights are revived and the calls and garnishments may start again.

What happens if I cannot fulfill the terms of my proposal?

Making a debt reduction proposal that is accepted by the majority of your creditors must be paid and your promises kept. However, if you cannot meet the terms of your proposal, you may wish to amend them. If you cannot amend and fail to meet the terms, your proposal will fail and will be annulled and your creditors are free to start legal action once more.

What happens once my proposal has been completed?

Once your proposal has been completed, our office will send you an Order called a Certificate of Compliance. Any remaining balances owed to your creditors are extinguished. Every consumer proposal is different, however, there may be some exceptions to your debt reduction solution. We can discuss these exceptions when you meet with us.

How will the proposal affect my credit rating?

A consumer proposal will give you an R7 credit rating at the credit bureau for 3 years after the proposal is completed. Attending 2 financial counselling sessions is required during your proposal. These sessions will teach you how to use credit wisely for future expenses.

These debt reduction solutions along with financial management counselling or insolvency counselling are intended to get you out and keep you out of debt. If you’re interested in creating a consumer proposal in the Halifax Regional Municipality, call Salyzyn & Associates Limited. We have offices in Dartmouth, Bedford, Kentville, and Enfield (non-resident) and serve clients in Greater Halifax, the Annapolis Valley, and Nova Scotia.

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