What happens after consumer proposals are finished?
After all the payments are made, you receive a Certificate of Full Performance and become relieved of previous debts. A consumer proposal is a better option if you are financially solvent. If you have a stable source of income and are capable of consistently making payments, this would be a good option. But you MUST make those payments. You’re allowed to defer on a maximum of two payments. Once you defer three times, your proposal gets annulled. The point of a consumer proposal is to get a trustee to convince your creditors into accepting lower lump sum payments from you each month. If you’re lucky, you could end up paying only 50% of what you owe. But more often than not, you pay a lot more. This is not just due to the percentage, but also the fees that your trustee deducts from each monthly payment. These can fees can go up to 20%. You may think you’re getting a great deal, but you could only be paying only 30% less than the amount you’d owe if you made those payments in full. That’s
