What Duties Will I Have During A Consumer Proposal?

Once your consumer proposal has been filed there are certain duties that you have to perform to ensure that it will be successfully completed. Your trustee will guide you through the process, but knowing your responsibilities can make the journey much easier.

1. Make your payments according to the terms of your consumer proposal. Your consumer proposal is likely written in monthly terms, for example, $200 per month for 48 months.  However, you can make the payments more frequently such as weekly, bi weekly or semi-monthly. Your payment terms set out the minimum amount that you need to pay each month.  Make sure you do not miss any payments.  Once you miss 3 months of payments, your proposal is terminated, regardless of the reason for the missed payments. You can also make additional payments whenever you want and pay off the proposal at any time.
2. Attend 2 mandatory credit counselling sessions. The first session must be completed no sooner than 10 days after the filing of the proposal and no later than 60 days after filing. The second session must be completed within 210 days of filing.  There must be at least 30 days between the first and second session. These sessions must be attended in person.  It is very important that you get the sessions done within the required time frame because if you don’t complete them, your proposal will be cancelled or delayed.
3. If there is a meeting of creditors, you may need to attend. Occasionally the meeting is only required for administrative reasons and you may not need to come, but plan on attending unless you are told otherwise.
4. Update your trustee with any changes to your personal information. If you move, your phone number changes, or you have a new email address, make sure you advise your administrator. You want to make sure they can contact you if needed.
5. Co-operate with your administrator. Make sure you return phone calls, emails, or letters.  They are contacting you because they need information.  If you don’t do what is required; you may find that your administrator will go to court to have the proposal terminated.

If you have any questions about specific duties during your consumer proposal, contact your trustee for more information.  If you’re considering filing a consumer proposal and want to know more about the process, contact a local bankruptcy expert to book a free no-obligation consultation to discuss your options.