[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/rkillen.ca\/consumer-proposal-in-ontario-an-alternative-to-bankruptcy\/#BlogPosting","mainEntityOfPage":"https:\/\/rkillen.ca\/consumer-proposal-in-ontario-an-alternative-to-bankruptcy\/","headline":"Consumer Proposal In Ontario: An Alternative To Bankruptcy","name":"Consumer Proposal In Ontario: An Alternative To Bankruptcy","description":"Consumer Proposal In Ontario: An Alternative To BankruptcyWatch this video on YouTube Most people don\u2019t want to declare bankruptcy in Ontario. Therefore, when they would go to a licensed insolvency trustee, they would be looking for an alternative to bankruptcy. The alternative that a trustee in bankruptcy would provide is called a consumer proposal in […]","datePublished":"2019-04-21","dateModified":"2024-04-19","author":{"@type":"Person","@id":"https:\/\/rkillen.ca\/author\/adminrkillen\/#Person","name":"R. Killen","url":"https:\/\/rkillen.ca\/author\/adminrkillen\/","identifier":1,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/291a08cd2df156bf4f7bceb09e15cda94bbf15ef7e70c7db3a538bde0c4a0230?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/291a08cd2df156bf4f7bceb09e15cda94bbf15ef7e70c7db3a538bde0c4a0230?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Richard Killen and Associates","logo":{"@type":"ImageObject","@id":"https:\/\/rkillen.ca\/wp-content\/uploads\/2016\/08\/landscape-logo-12345-for-web.png","url":"https:\/\/rkillen.ca\/wp-content\/uploads\/2016\/08\/landscape-logo-12345-for-web.png","width":600,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/rkillen.ca\/wp-content\/uploads\/2019\/03\/happy-couple-paying-bills.jpg","url":"https:\/\/rkillen.ca\/wp-content\/uploads\/2019\/03\/happy-couple-paying-bills.jpg","height":667,"width":1000},"url":"https:\/\/rkillen.ca\/consumer-proposal-in-ontario-an-alternative-to-bankruptcy\/","video":{"@context":"http:\/\/schema.org\/","@type":"VideoObject","@id":"https:\/\/www.youtube.com\/watch?v=MyMy9Uei8v4#VideoObject","contentUrl":"https:\/\/www.youtube.com\/watch?v=MyMy9Uei8v4","name":"Consumer Proposal In Ontario: An Alternative To Bankruptcy","description":"https:\/\/rkillen.ca\/consumer-proposal-in-ontario-an-alternative-to-bankruptcy\/, Richard Killen, a Scarborough Ontario Licensed Insolvency Trustee provides an overview of why consumer proposals in Ontario are a very popular alternative to personal bankruptcy. \n\nMost people don\u2019t want to declare bankruptcy in Ontario. Therefore, when they would go to a licensed insolvency trustee, they would be looking for an alternative to bankruptcy. The alternative that a trustee would provide is called a consumer proposal in Ontario. A consumer proposal is an agreement between what the debtor is willing to offer and what the creditor is willing to accept to resolve a financial debt problem.  In a consumer proposal, the debtor will have an agreement with creditors through a trustee. This agreement is under the protection of Bankruptcy and Insolvency Act Law.\n\nBenefits of A Consumer Proposal\nA consumer proposal would allow the debtor to resolve his financial debt problems without going bankrupt. The consumer proposal removes the ordinary options that creditors have to collect money from the debtors whenever they are behind with their payments. This means that creditors can\u2019t sue the debtor when he is unable to pay his debts. Through the proposal, creditors are enforced to pay attention to what a debtor offers to them.\n\nSince a consumer proposal is an open contract, the debtor can accelerate his payments. He can pay more than the agreed monthly plan, thus, speeding up the term.\n\nHow Consumer Proposal Works In Ontario\nIf a debtor becomes insolvent and can no longer pay his contracts, the courts are there to try and find a just resolution to it. Hence, the debtor will ask the court to discharge him from his debts.\n\nCreditors can\u2019t just accept any proposal that a debtor offers. It has to something reasonable. Therefore, a consumer proposal involves a process. First, the debtor has to figure out how much he can afford to pay on a monthly basis. As an alternative to bankruptcy, a consumer proposal is a matter of figuring out the budget of the debtor. Once he makes up his mind as to how much he can pay monthly, the trustee has to prepare all the paper works. As soon as the contract is ready, the trustee would give it to the creditors. Then, creditors will decide whether they accept the offer or not. When the creditor accepts the offer within the given period of time, then comes a new deal.\n\nFor example, you owe a creditor $40,000 worth of consumer debt. You make a proposal offering to pay $15,000. If the creditor finds it as it\u2019s for their best interest, they would accept the offer. If they don\u2019t accept it, negotiations may take place as part of the process. When the creditor accepts a debtor\u2019s proposal, the court will then approve or ratifies it. The debtor will then make his monthly payments.\n\nThe consumer proposal process can take from 9 months to 3 years depending on circumstances. Sometimes, it can take longer than 3 years. However, for most people, the proposal has a straightforward process. It is just following administrative rules and as long as the debtor hasn\u2019t done anything fraudulent, the courts will end up releasing him from his debts.\n\nConsumer Proposal vs Bankruptcy\nWhile both consumer proposal and bankruptcy have some things in common, such as both are court-supervised and release the debtor from being sued when he\u2019s behind from his payments, consumer proposal and bankruptcy are different.  The difference between bankruptcy and consumer proposal is that in the proposal, the debtor makes a deal with the creditor. In bankruptcy, there is no need for a deal with the creditor. The debtor would be asking the courts to release him from his debts. Since the debtor has signed contracts, the creditor has a right to expect those contracts to be fulfilled. Furthermore, the basic laws of contracts are there for a reason and quite valid. The number of Consumer proposals in Ontario exceeds the number of bankruptcies.\n\nIf you are having debt problems and considering bankruptcy or a consumer proposal, I invite you to talk to one of our licensed insolvency trustees. This will ensure you have all the information to make an educated decision on your debt relief solution.\n\nWe can meet with you during business hours or book after hours appointments if that is more convenient for you.\n\nContact us for a fresh start (416) 285-9511\nThis may be the most stress relieving call you will ever make!\n\nFollow us on Social Media: \nhttps:\/\/www.instagram.com\/killen_trustee\/\nhttps:\/\/twitter.com\/Killen_Trustee\nhttps:\/\/www.facebook.com\/rkillenassociates\nhttps:\/\/www.linkedin.com\/company\/richard-killen-&-associates\/\nhttps:\/\/www.linkedin.com\/in\/richard-killen-020aaaba\/\n\nRichard Killen and Associates have 10 locations across the Greater Toronto Area.\nOur main office is at\nRichard Killen & Associates Ltd\n2130 Lawrence Ave E #Suite 402, Scarborough, ON M1R 3A6\nTel: (416) 285-9511\nhttps:\/\/rkillen.ca","thumbnailUrl":["https:\/\/i.ytimg.com\/vi\/MyMy9Uei8v4\/default.jpg","https:\/\/i.ytimg.com\/vi\/MyMy9Uei8v4\/mqdefault.jpg","https:\/\/i.ytimg.com\/vi\/MyMy9Uei8v4\/hqdefault.jpg","https:\/\/i.ytimg.com\/vi\/MyMy9Uei8v4\/sddefault.jpg"],"uploadDate":"2019-03-27T17:07:50+00:00","duration":"PT6M25S","embedUrl":"https:\/\/www.youtube.com\/embed\/MyMy9Uei8v4","publisher":{"@type":"Organization","@id":"https:\/\/www.youtube.com\/channel\/UCVqfGDwXy-OK5RHKZGkaMUw#Organization","url":"https:\/\/www.youtube.com\/channel\/UCVqfGDwXy-OK5RHKZGkaMUw","name":"Richard Killen & Associates Ltd","description":"Since 1992 we at Richard Killen & Associates have helped thousands of people resolve their financial problems. With over 22 years experience in this industry, our president, Richard Killen, and the rest of our team understand the difficulties that honest people can sometimes find themselves in. This expertise makes it possible to provide you with a service that effectively deals with the issues.\n\nThe strength of our company is exemplified by the manner in which we treat our customers. We understand the intense pressure people are under. You will feel better after having spoken with our staff and your sense of dignity will be restored. The relief most people feel is tangible.","logo":{"url":"https:\/\/yt3.ggpht.com\/ytc\/AIdro_nK1yzM56nIFCGmWO7scxw1pLTW2Z8LVLH_kg8kdbbfw5M=s800-c-k-c0x00ffffff-no-rj","width":800,"height":800,"@type":"ImageObject","@id":"https:\/\/www.youtube.com\/watch?v=MyMy9Uei8v4#VideoObject_publisher_logo_ImageObject"}},"potentialAction":{"@type":"SeekToAction","@id":"https:\/\/www.youtube.com\/watch?v=MyMy9Uei8v4#VideoObject_potentialAction","target":"https:\/\/www.youtube.com\/watch?v=MyMy9Uei8v4&t={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"},"interactionStatistic":[[{"@type":"InteractionCounter","@id":"https:\/\/www.youtube.com\/watch?v=MyMy9Uei8v4#VideoObject_interactionStatistic_WatchAction","interactionType":{"@type":"WatchAction"},"userInteractionCount":128}]]},"about":["Consumer Proposals"],"wordCount":648,"articleBody":"Consumer Proposal In Ontario: An Alternative To BankruptcyWatch this video on YouTubeMost people don\u2019t want to declare bankruptcy in Ontario. Therefore, when they would go to a licensed insolvency trustee, they would be looking for an alternative to bankruptcy. The alternative that a trustee in bankruptcy would provide is called a consumer proposal in Ontario. A consumer proposal is an agreement between what the debtor is willing to offer and what the creditor is willing to accept to resolve a financial debt problem. \u00a0In a consumer proposal, the debtor will have an agreement with creditors through a trustee. This agreement is under the protection of Bankruptcy and Insolvency Act Law.Benefits of A Consumer ProposalA consumer proposal would allow the debtor to resolve his financial debt problems without going bankrupt. The consumer proposal in Toronto removes the ordinary options that creditors have to collect money from the debtors whenever they are behind with their payments. This means that creditors can\u2019t sue the debtor when he is unable to pay his debts. Through the proposal,\u00a0creditors are enforced to pay attention to what a debtor offers to them.Since a consumer proposal is an open contract, the debtor can accelerate his payments. He can pay more than the agreed monthly plan, thus, speeding up the term.How Consumer Proposal Works In OntarioIf a debtor becomes insolvent and can no longer pay his contracts, the courts are there to try and find a just resolution to it. Hence, the debtor will ask the court to discharge him from his debts.Creditors can\u2019t just accept any proposal that a debtor offers. It has to something reasonable. Therefore, a consumer proposal involves a process. First, the debtor has to figure out how much he can afford to pay on a monthly basis. As an alternative to bankruptcy, a consumer proposal is a matter of figuring out the budget of the debtor. Once he makes up his mind as to how much he can pay monthly, the trustee has to prepare all the paper works. As soon as the contract is ready, the trustee would give it to the creditors. Then, creditors will decide whether they accept the offer or not. When the creditor accepts the offer within the given period of time, then comes a new deal.For example, you owe a creditor $40,000 worth of consumer debt. You make a proposal offering to pay $15,000. If the creditor finds it as it\u2019s for their best interest, they would accept the offer. If they don\u2019t accept it, negotiations may take place as part of the process. When the creditor accepts a debtor\u2019s proposal, the court will then approves or ratifies it. The debtor will then make his monthly payments.The consumer proposal process can take from 9 months to 3 years depending on circumstances. Sometimes, it can take longer than 3 years. However, for most people, the proposal has a straightforward process. It is just following administrative rules and as long as the debtor hasn\u2019t done anything fraudulent, the courts will end up releasing him from his debts.Consumer Proposal vs BankruptcyWhile both consumer proposal and bankruptcy have some things in common, such as both are court-supervised and release the debtor from being sued when he\u2019s behind from his payments, consumer proposal and bankruptcy are different. \u00a0The difference between bankruptcy and consumer proposal is that in the proposal, the debtor makes a deal with the creditor. In bankruptcy, there is no need for a deal with the creditor. The debtor would be asking the courts to release him from his debts. Since the debtor has signed contracts, the creditor has a right to expect those contracts to be fulfilled. Furthermore, the basic laws of contracts are there for a reason and quite valid. The number of Consumer proposals in Ontario exceeds the number of bankruptcies."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Consumer Proposal In Ontario: An Alternative To Bankruptcy","item":"https:\/\/rkillen.ca\/consumer-proposal-in-ontario-an-alternative-to-bankruptcy\/#breadcrumbitem"}]}]