How many times can I file a consumer proposal?

How many times can I file a consumer proposal?

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A consumer proposal is an alternative solution to avoid declaring bankruptcy. It involves renegotiating what you owe to your creditors, handled by Licensed Insolvency Trustees on your behalf. Think of it as a single negotiated settlement between you and your creditors on terms you both agree on. All creditor action including collection calls and interest charges are stopped, giving you immediate peace of mind again. You pay what you can afford in monthly payments with up to five years to pay, instead of what your creditors were demanding. This locked in amount allows you to know exactly what is owed so you can make manageable payments and get on with your life. Consumer proposals can only be obtained through the help of a Federally Licenced Insolvency Trustee like Bromwich+Smith, and this service is paid by a government tariff. They remain on your credit for three years after you complete your proposal, instead of the six years that comes with a completed bankruptcy, and there are many ways to rebuild your credit through this process.

Is there a limit to the number of times you can file a consumer proposal?

The short answer is no, there is no limit to the number of times you can file a consumer proposal. Unlike a bankruptcy.  If you file a second bankruptcy, your discharge takes longer and may cost more and if you file a third bankruptcy you would need to go to court to apply for a discharge.  With each consumer proposal, your success is based on your creditor’s acceptance of the proposal.

Does the cost go up when you file a second or third consumer proposal?

Each consumer proposal is the same, it is always based on your ability to pay.  There is no additional fee for a 2nd or 3rd consumer proposal. 

Can I file a second consumer proposal before my original proposal is completed?

Unfortunately, you cannot file two consumer proposals simultaneously.  You would need to complete your first consumer proposal and, if after completion you need help with new debts, you can file another consumer proposal. If that debt is too high for you to continue your current consumer proposal payments, you have the option to collapse or amend your consumer proposal and file another insolvency. 

What if my consumer proposal was annulled?

If your consumer proposal was annulled (your proposal can be automatically annulled if you miss three payments) a second consumer proposal would not be possible.  In this case, you would need to either revive the consumer proposal within 30 days or go to court to revive it or look at filing into bankruptcy.

If you have filed a consumer proposal in the past and are feeling overwhelmed or are in the midst of one and new debt is causing you stress, remember you can always reach out for advice from a Licensed Insolvency Trustee like Bromwich+Smith.

Learn more: Consumer Proposal: An Alternative to Bankruptcy

If you need help, ask us your questions, or book your consultation today. No matter how difficult or complicated your financial situation may seem, you can rest assured there are options available to get you out of the perpetual cycle of debt. Contact Bromwich+Smith today for your free consultation. Our Debt Relief Specialists are available by phone at 1-855-884-9243 or you can request a call back via our contact us page. There is no need to travel to a local office. Licensed Insolvency TrusteeBromwich+Smith, is now offering video appointments, with all services available from the comfort of your home.

 

By Taz Rajan Community Engagement Partner at Bromwich+Smith
Taz has been in the finance industry for nearly 2 decades and has always been passionate about education and empowerment.  Having declared bankruptcy herself, she intimately understands the shame, stigma surrounding matters of debt as well as the joy and relief that comes from restructuring.  Taz actively works to normalize the conversation of debt through blogs, media interviews, webinars, lunch & learns and through building relationship.

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