Notifying Creditors and Filing the Consumer Proposal

Once you have signed all the documents assembled by your licensed insolvency trustee, he or she will file your consumer proposal with an Official Receiver. Within the next five business days, the licensed insolvency trustee is required to mail a Notice to Creditors to any company or individual on the proposal.

Creditors must respond to a consumer proposal within 45 days of it being filed with an Official Receiver. Individually, they may vote to accept your consumer proposal as it is written, they may request an amendment to the terms, or they may vote to reject your proposal. Additionally, they may choose to submit a claim but not vote, or they may even decide to do nothing, foregoing even the submission of a claim.

One thing to note is that voting power is decided by dollar value of the claim a creditor has against you. If, after 45 days, 50% +1 of your creditors have voted in favour, then your consumer proposal is considered to be accepted by all creditors. If 25% or more of your creditors have rejected your proposal or asked for changes to it, your licensed insolvency trustee will call an official meeting (First Meeting of Creditors) to see if an agreement can be negotiated. Legally, you must attend this meeting.