Navigating Life After Filing A Consumer Proposal: What to know 

Navigating Life After Filing A Consumer Proposal: What to know 

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By Bromwich+Smith Staff | 929 words | Reading Time: 4 minutes  | Date: 2023/08/29

Filing a consumer proposal is a huge step towards financial security. If you have made it to this step take a moment and recognize the work you have done to get here. We know that there have been many emotions up to this point and we hope that post filing that you are at a place of peace. It's important to know that, your journey towards financial freedom doesn't end once you've filed the proposal. In fact, it's just the beginning. There are important steps ahead and we want to help with the expectations in this crucial phase of your financial journey.  

Top Ten Questions Asked After Filing a Consumer Proposal 

  1. Why are Creditors still calling? 

We encourage you to answer one of these calls, it gives you the ability to inform your creditors that you have filed a Consumer Proposal with Bromwich+Smith. Please also ask them for your account number or reference number  as well as a fax or email your Trustee can send your paperwork to. Simply send this information to your Financial Wellness Partner who can send the required information to your creditor.  

  1. When do my payments start?  

Your payments have been setup based upon the payment agreement signed at the time of filing. If you are unsure, please reference your signed paperwork. A copy would have been sent to you by both the individual who completed your signup, and your Financial Wellness Partner. 

These payments are incredibly important. Please ensure the monies are there on the scheduled day. Your Consumer Proposal payments should be treated the same way as a vehicle payment, or a mortgage payment.  

  1. When does my credit go up? 

Filing a Consumer Proposal will first affect your credit score negatively. However, you are sacrificing your credit score today for a brighter tomorrow. Know that your credit score is already taking a hit due to any missed or late payments to any of your creditors.  During your  financial counselling sessions, we encourage you to discuss your credit goals or aspirations. We will be able to help you set up realistic expectations and steps on how to achieve these goals. 

  1. When do I complete my mandatory counselling sessions? 

Our Counsellors will contact you approximately 6-8 weeks after filing your Consumer Proposal to schedule your first session. Upon completion of the first session, you will book your second session. If you are needing to start on these sessions earlier, please contact your financial wellness partner who can help advise you. 

  1. When does my Consumer Proposal get accepted? 

There is a mandatory 45-day voting period. As such, we cannot advise if your Consumer Proposal is accepted until after the expiration of that period. However, if the Consumer Proposal is being voted against, we will be in contact with you to discuss options. 

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  1. Who files my taxes? 

In a Consumer Proposal, you are responsible for your own tax filings. Please note that Canada Revenue Agency has a right to offset any refund generated in the year of filing on a pro-rated basis. To clarify, if you filed halfway through the year, and were entitled to a $1,200 refund; CRA has the right to keep $600 of this refund. Furthermore, CRA has the right to offset benefits (GST, Climate Action Incentive Plan, Etc.) that are based upon the tax year of filing. This could mean you will not receive specific benefits until the following tax year. 

  1. Who do I contact if there are issues with my Consumer Proposal? 

Within the first few days after signing, you should have received an email from your dedicated Financial Wellness Partner. They are your direct point of contact as you go through your Consumer Proposal. If you do not have that information, please reach out to [email protected]  

  1. My old bank account is incurring additional NSF fees from my Creditors attempting to take payments 

Take immediate action to close any old bank accounts if not overdrawn; if overdrawn, you can ask your Bank to freeze the account so no further charges are incurred. If that is done, this account should have been included in your list of debts. If you have forgotten about this, please reach out to your Financial Wellness Partner. 

  1. My credit card, line of credit, or overdraft have some room/limit left on them, can I use it now that I have filed? 

No! It is very important that you do not use these old accounts for any reason. Now that you have filed a Consumer Proposal, do not use any of your old credit products. These now form part of the Consumer Proposal. Any use of these accounts post-filing could cause the Creditor to demand repayment of the debt and postpone the process.  

  1. Can I add an account/creditor I forgot? 

Possibly – Please provide the information (Name of Creditor, Email/Fax, and Balance owing) about the Creditor to your Financial Wellness Partner. If the debt pre-dates the filing of your Consumer Proposal and you have not continued to use the service or product, the debt should be included in your Consumer Proposal. This is another reason why it is important to stop using any of your old credit once you have filed for a Consumer Proposal. 

If you have any further questions about your file, including how to make changes to your address, banking information, make additional payments etc it is important to contact your Financial Wellness Partner. Your dedicated team at Bromwich+Smith is here to support you through this journey. 

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If you have family or friends who are struggling with debt and unsure of how to get back on track, refer them for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at  1.855.884.9243, or request a call back at contact us page.  

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