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Tuesday, August 1, 2017

4 Pillars Specialists Can Help If Your Consumer Proposal Was Denied





Filing for a consumer proposal is one of the most effective ways to pay off debt. Through this process, debtors can comfortably repay what they owe through a licensed insolvency trustee. Most creditors prefer this method as well because proposals often offer greater realizations than a bankruptcy.

Once you file for a consumer proposal with support and guidance from 4 Pillars in Victoria, Nanaimo, Port Alberni, or Courtenay, your creditors will have a 45-day voting period. During this time, they will determine whether to accept or reject your proposal. If the majority votes to accept your proposal, then the process will move forward. If the votes are split, you may be asked to attend a meeting with your creditors where both parties will try to reach an agreement.

Although the rate at which proposals get accepted is fairly high, there are some cases when debtors can be rejected. Fortunately, there are other options available:

Revise and Resubmit

 

Debt relief specialists will first recommend making changes to the proposal before trying anything else. You might have been rejected because majority of your creditors didn’t like the terms you presented with your initial proposal. If you were invited to meet with the creditors, take it as an opportunity to ask if they would consider accepting with certain additional terms.

Consider Other Solutions

 

Depending on your current situation, there might be a better debt solution for you. For instance, if consumer proposal doesn’t work out, you can try another form of proposal. A Division I proposal bears some similarities to consumer proposal, and is ideal for both businesses and individuals. Meanwhile, if you own a company that has over $5 million in debt, you can restructure your financial affairs through the Companies’ Creditors Arrangement Act (CCAA).

It’s best to weigh all your options to make informed decisions. A 4 Pillars consultant can help you determine whether you are an ideal candidate to the available alternatives.

File for Bankruptcy

 

Bankruptcy is viewed more as a last resort, but there are a few perks that come with bankruptcy protection. Under the Bankruptcy and Insolvency Act, a trustee will sell, use, or transfer your assets to pay your creditors. Although bankruptcy will have a significant impact on your credit and finances, it will put a complete stop to all actions taken against you by your creditors. They can no longer try to contact you or forcibly take your income through wage garnishment.

Speak to an expert to increase your chances of success with consumer proposal or find suitable alternatives in case of rejection.

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