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Consumer Proposals |
Financial difficulties can arise at any time. For most people, the decision between filing a bankruptcy or a Consumer Proposal is a serious and confusing one. For information on the bankruptcy process please refer to our publication titled Understanding the Bankruptcy Process.
We at BDO recognize the need to understand the Consumer Proposal process and its associated risks. The purpose of this booklet is to explain in simple terms the duties, the restrictions and the responsibilities imposed on a person who files a Consumer Proposal.
The provisions of the Bankruptcy and Insolvency Act ("the Act") dealing with Consumer Proposals are intended to help reduce the number of bankruptcy filings by allowing the consumers who owe less than $75,000 (excluding mortgages on their principal residences), to negotiate with their creditors for the reduction of their debt and/or for an extension of the time for payments of their debts. The procedure to be followed for Consumer Proposals is very streamlined.
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