You start a consumer proposal by meeting with one of our trustees to discuss your financial situation and debts, things like;
- what unsecured debt you have
- who do you owe it to
- your family situation e.g. who is working
- what is your household income
- what are your expenses
From the information you provide, the trustee or proposal administrator completes an assessment for the consumer proposal.
The trustee then makes a proposal to you that they will meet with the people you owe money to. In that meeting the trustee will tell your creditors that you are unable to make the payments that were initially agreed to and are filing a consumer proposal.
The trustee then makes a proposal/agreement to your creditors, that you will agree to pay a lessor amount on the debts over a three (3) to five (5) year period. Usually this is calculated to be up to seventy (70) percent lower than the original amount.
If agreed upon then the loan is renegotiated for a lessor amount over a longer period of time.