Overwhelmed with debt?

Can a consumer proposal be rejected?

Can a consumer proposal be rejected?

In nearly every consultation we have clients frequently have the same questions. The most frequent question is ‘can a proposal be rejected’? We certainly understand this fear. When someone is going to file a proposal they are at a point in their lives where stress is the norm. The last thing they need is the stress that their consumer proposal might be rejected. To answer the question:

Yes, a consumer proposal can be rejected. A consumer proposal requires that at least 50% of your creditors vote in favour of your proposal. In the event they do not, it will not be accepted. Thankfully, when working with 4 Pillars Halifax the chance of a proposal being rejected is almost zero based on past clients.

Yes – you heard us right. We have an almost 100% success rate in assisting our clients to navigate the consumer proposal process and help ensure their consumer proposal is correctly structured and not rejected. Are there exceptions to the rules? Of course – some proposals are certainly riskier than others but even then the chance is still very low.

We’ve written an extremely in-depth article on consumer proposals. It is worth a read if you are considering one.

If you think your proposal will be rejected you can generally rest easy as it is very rare. If you would like an opinion on whether or not your situation is ‘risky’ (as of right now, this only really applies if over 50% of your debt load is to the government) please reach out. We’d be more than happy to take a look at your situation.

Consumer proposal alternatives

Not sure a consumer proposal is the right option for you? We’ve created many topics on the various options that exist in Nova Scotia. Click here to read about Bankruptcy, a popular alternative to a proposal or here to read about some other options. If you’re simply wondering about how to budget your way out of your debt in an effective manner Click Here.

Debt Relief SpecialistThis article was written by David Moffatt. A Senior Debt Relief Specialist with 4 Pillars Halifax. 4 Pillars has assisted in creating plans that have helped save Canadians over $1 Billion dollars of consumer and tax debt since 2002. We believe that no consumer should have to struggle with the stress of overwhelming debt. Our debt restructuring plans can help you cut your debt by up to 80% with less than 3% of our clients ever getting into deep financial difficulties again. If you are struggling with debt please reach out. It hurts to continue to suffer financially.



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