Do most consumer proposals get accepted?
Does everyone get approved for consumer proposal
The vast majority of proposals are accepted, in part because your trustee, through his experience will draft a proposal that has the greatest chance of being accepted. The main rule drafting a consumer proposal is your creditors must be better off than if you were to go bankrupt.
What is the success rate of a consumer proposal
A consumer proposal is a legal agreement that enables you to get out of debt for less than the full amount you owe. Consumer proposals filed by Remolino & Associates have a success rate of 96% and reduce your unsecured debts by up to 75%.
How often are consumer proposals accepted
On an overall basis, nearly 99% of Consumer Proposals filed receive creditor approval based on the fact that they provide for a better recovery (i.e. more money repaid to creditors) than would be the case if the individual chose to file for bankruptcy.
Do consumer proposals get rejected
If 75% of your creditors vote for your consumer proposal to pass, the creditors that voted “no” will have to abide by the agreement as it has been laid out. If more than 25% of your creditors vote to reject your offer, they'll need to have a special meeting to negotiate different terms for your consumer proposal.
Why would a consumer proposal be rejected
Consumer Proposal Rejected Due to Debtor Conduct
You brought on, or contributed to your financial situation by rash and hazardous speculations, unjustifiable extravagance in living, gambling or by culpable neglect of your business affairs.
Do creditors usually accept consumer proposal
Your creditors have 45 days from the date the Consumer Proposal is filed with the OSB to accept or reject your proposal. If they do not respond within 45 days, they will be deemed to have accepted your proposal.
How often do consumer proposals get rejected
Consumer proposals are rarely rejected; however, if your creditors do reject your consumer proposal, all hope is not lost. When you file a consumer proposal, your creditors have 45 days to submit votes on your proposal.
Why would a consumer proposal be denied
The court may reject the proposal if it finds that the terms of the proposal are not reasonable or fair to the debtor or the creditors. However, if no request is made within 15 days, the proposal is considered approved.
What is the downside of a consumer proposal
Disadvantages of a Consumer Proposal:
A proposal will usually take longer to complete than a bankruptcy. Lowering your monthly payment means longer time paying back, however, if your situation improves, you CAN pay off a proposal early. Credit rating is still affected – A Consumer Proposal DOES affect your credit.
How often are consumer proposals rejected
Consumer proposals are rarely rejected; however, if your creditors do reject your consumer proposal, all hope is not lost. When you file a consumer proposal, your creditors have 45 days to submit votes on your proposal.