Proposal to Creditors

• You must owe at least $1,000.00 and be insolvent. If you have sufficient income or another source of funding, you may make a Proposal to settle your debts without filing bankruptcy.
   
• A Proposal is an opportunity for a debtor to make a settlement with creditors while avoiding bankruptcy. The impact on your credit rating is not as serious as in a bankruptcy. Creditors are offered a new arrangement. Interest, penalties, executions and garnishments are stopped once the Proposal is filed.
   
• The duration of a Proposal may range from a few monthly payments, to payments made over a period of years.
   
• A debtor's assets may be kept outside of the Proposal process; however, the value of the assets must be taken into consideration when creating the Proposal. It is generally expected that creditors will receive a better outcome in a Proposal than in a Bankruptcy.
   
• Two mandatory counselling sessions are arranged for the debtor. These sessions will help the debtor understand reasons for financial difficulty and aim to educate to help prevent financial difficulty in the future.
   
• A Proposal typically deals only with unsecured creditors.
   
• Please contact us for further information on Proposals, or to set up a meeting to discuss your options.