How to File a Consumer Proposal

Instead of filing bankruptcy, a consumer proposal is a better alternative. File a form stating you will pay back your debt, but at a lower amount and over a longer period of time. The proposal lasts 5 years and is accepted by most creditors. Add your credit card debt, personal loans and tax debt. Interest is frozen from the date the consumer proposal is filed and the companies cannot take any legal action against you.

Instructions

1. Appoint yourself a trustee in bankruptcy; they help you gather your financial information together and figure out a monthly payment that you can make. Compare the payment amount to the total amount of what you owe to your creditors to determine how many months it takes to pay off your debt.

2. Write the proposal with your trustee in bankruptcy representative. The trustee in bankruptcy will contact your creditors for you.

3. File the necessary paperwork with your creditors to officially accept the consumer proposal. Your creditors have 45 days accept or deny your proposal. If 51 percent of your creditors accept the proposal, all your credits must accept. Then in 15 days, if no creditors object, the court accepts your proposal.

4. Accept the consumer proposal filed with the court by you and your creditors. If you do not pay the agreed upon amounts, you will be subject to annulment by the court.