When customers decide to take the step of filing for a consumer proposal, there are many steps involved in the process. If you are one of those customers, you may be wondering about the role of the consumer proposal administrator in Coquitlam, Westminster and Vancouver, British Columbia, Canada. The consumer proposal administrator plays a huge role in ensuring the success of your proposal process. In this article, we will explain the role of the consumer proposal administrator and how they can help you through this process.
Role of the Consumer Proposal Administrator
The consumer proposal administrator is an expert in the field of insolvency and provides relevant advice to the debtor regarding the filing of a consumer proposal. They help you assess your financial situation objectively and identify the best possible strategies for your situation. They act as a mediator between creditors and the debtor while preparing a proposal. Meetings with creditors are usually conducted by the administrator who represents the debtor’s interests. During the process, the consumer proposal administrator offers ongoing support to the debtor and helps monitor the progress of the proposal.
Responsibilities of the Consumer Proposal Administrator
A consumer proposal administrator has a responsibility to act in the best interests of both the debtor and creditors. As a neutral party, they ensure that the debtor’s proposal is fair to all parties involved. The administrator has the authority to submit the proposal and make disbursements to the creditors. They also provide monthly reports to the debtor and the creditors on the progress of the proposal. If the debtor is unable to make payments, the administrator will renegotiate a new payment plan with the creditors.
Qualifications of the Consumer Proposal Administrator
In British Columbia, Canada, a consumer proposal administrator is a licensed professional. They must meet the requirements of the Office of the Superintendent of Bankruptcy and must have at least five years of experience in the insolvency field. They must also pass an examination to obtain the license. Having an experienced, qualified administrator is essential to ensure that the proposal process goes smoothly, and you receive the best possible advice.
Benefits of Hiring a Consumer Proposal Administrator
Hiring a consumer proposal administrator is beneficial for several reasons. Firstly, they offer the debtor expert knowledge and advice on filing a proposal. This is especially important if you have little or no knowledge of the insolvency process. They also provide ongoing support through the process, ensuring that the proposal remains on track. Finally, having a qualified administrator ensures that the proposal will be prepared and submitted to meet all the legal requirements, increasing the likelihood of a successful outcome.
How Are Consumer Proposal Administrators Paid?
CPAs typically receive payment from two sources: First, there is an administrative fee set by provincial legislation that must be paid by each debtor when their proposal is filed. This fee is calculated based on several factors such as total debt amount, number of creditors included in the proposal, complexity of collection efforts required by the CPA, etc. The second source of payment for CPAs is any interest earned on funds held in trust during the course of administering a consumer proposal. These funds are held in trust until such time as they are distributed to creditors or other parties pursuant to court orders or agreements between creditors and debtors.
Licensed Insolvency Trustees
At J. Bottom & Associates, all our CPAs are also Licensed Insolvency Trustees (LITs). LITs have specific qualifications and experience that allow them to be licensed by Canada’s Office of Superintendent of Bankruptcy (OSB). As LITs, our CPAs have expertise related to both bankruptcies and consumer proposals—and can provide our customers with advice based on their individual circumstances. We understand that filing either type of insolvency can be a difficult decision—but rest assured our team has your best interests at heart!
Choosing the Right Consumer Proposal Administrator
When choosing a consumer proposal administrator in British Columbia, Canada, it is important to choose a licensed, experienced professional who will represent your interests. Look for someone who has a good reputation in the industry, has a high success rate and is easy to work with. Do your research and make sure you feel comfortable working with them.
Contact J. Bottom & Associates Ltd.
Filing for a consumer proposal can be a stressful process. However, hiring a consumer proposal administrator can make the process less daunting and less stressful. At J. Bottom & Associates, we have licensed and experienced administrators who will represent your interests and guide you through the process. Contact us today at 604-540-1920 to see how we can help.