Commercial Proposal

A consumer proposal is a legal proceeding that allows someone to get out of costly interest rates, pay back a percentage of what they owe and get a fresh start. Mike Wright & Associates will work out an agreement with creditors on your behalf, and the percentage paid, which is interest-free, will depend on your income, on the value of your assets and on the creditors, because they all have different expectations. Once an agreement is in place, you will make monthly payments for no more than five years. The process allows you to avoid bankruptcy, protect assets and make manageable payments. The negotiated settlement comes from the income you make every month after you have paid household bills.


What happens when you file a consumer proposal:

  1. Mike Wright & Associates will file the proposal with the Office of the Superintendent of Bankruptcy. Once your proposal is filed, you stop making payments directly to your unsecured creditors. In addition, if your creditors are collecting your salary through garnishment of wages or have filed lawsuits against you, these actions are stopped.
  2. Mike Wright & Associates will submit the proposal to your creditors. The proposal will include a report on your personal situation and the causes of your financial difficulties.
  3. Creditors have 45 days to either accept or reject the proposal. They can also do this either prior to or at the meeting of creditors, if one is held.

Definitions

debt — something, typically money, that is owed or due
debtor — a person or institution that owes a sum of money
creditor — a person or institution to whom money is owed
consumer proposal — a formal, legally binding process that is administered by a licensed insolvency trustee (LIT). In this process, the LIT will work with you to develop a proposal, which is an offer to pay creditors a percentage of what is owed to them or to extend the time you have to pay off the debts—or both
bankruptcy — a legal proceeding involving a person or business that is unable to repay their outstanding debts. All of the debtor’s assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt
licensed insolvency trustee (LIT) — federally regulated professionals who provide advice and services to individuals and businesses with debt problems. LITs help people make informed choices to deal with their financial difficulties
unsecured creditors — a person or organization that has lent money and has no right to the property or other assets of the borrower if the money is not paid back
secured creditors — an organization that has lent money under an agreement that they can take particular assets from the borrower if the money is not paid back