Can You File a Consumer Proposal Twice?
Interested in Filing a Consumer Proposal in Vancouver, BC?
Our Consumer Proposal Experts Have Solutions
Are you wondering about filing more than one consumer proposal? It’s not as uncommon as you might think for someone to use consumer proposals to become debt free more than once in their lifetime. If you’ve filed a consumer proposal before and want to explore the option again, we have good news for your current outstanding debt: You can file a second consumer proposal!
The financial experts at J. Bottom & Associates Ltd. can help you understand when it makes sense to file a repeat consumer proposal and how it works in Vancouver, BC, and the surrounding areas, including Coquitlam and Westminster. Contact our team today to learn more!
What Is a Consumer Proposal?
Individuals file consumer proposals to get debt relief without filing for bankruptcy. They’re a legally binding arrangement allowed under the Bankruptcy and Insolvency Act to help consumers find relief from their personal, unsecured debts, including:
- Credit cards
- Certain types of student loans
- Payday loans
- Bank loans
Is There a Limit to the Number of Times I Can File?
Unlike bankruptcy, there is no limit to the number of times you can file a consumer proposal. If you file a second bankruptcy, your discharge takes longer and may cost more. If you file a third bankruptcy, you must go to court to apply for a discharge. With each consumer proposal you file, your success is based on the creditor’s acceptance of your proposal.
Do Rates Increase When You File Additional Consumer Proposals?
Consumer proposals are only based on your ability to pay. There are no additional fees or payment increases if you file more than one consumer proposal. Even if you file three or four consumer proposals, there is no extra cost.
Can I File a Second Proposal Before My First One Is Complete?
You can’t file two consumer proposals at the same time. You must complete your first proposal and receive a Certificate of Full Performance to file another consumer proposal to help with new debts. If your current debt is too high to make the monthly payments, you can either collapse or amend your proposal and file another insolvency.
What if My Consumer Proposal Was Annulled?
You can’t file a second consumer proposal if your consumer proposal was annulled due to missed payments. In this case, you need to either revive the consumer proposal within 30 days, go to court to revive it or look into filing for bankruptcy.
If you’ve filed a consumer proposal before and are feeling overwhelmed by new outstanding debts, remember you can always reach out for advice from the team of financial experts at J. Bottom & Associates.
If You’re Currently in a Consumer Proposal, Can You File a Second One for New Debt?
If you’re in the process of completing a consumer proposal but have incurred new debt in the process, you can’t include the new debt in your current proposal. You also can’t file a second consumer proposal for the new debt.
How Long Does a Second Proposal Stay on a Credit Report?
Like the first consumer proposal filed, the second one will remain on your credit report for three years after completion or six years after the filing date, whichever comes first. All consumer proposals stay on your credit report for the same amount of time.
How Many Consumer Proposals Can I File in My Lifetime?
Legally, there is no limit to the number of consumer proposals you can file in Vancouver, BC, if you qualify.
Reach Out to the Team at J. Bottom & Associates Today!
When you need help understanding debt management strategies, you can count on the financial experts at J. Bottom & Associates Ltd. As a government-licensed insolvency and financial restructuring firm, we’re committed to providing bankruptcy and debt management solutions for individuals and companies experiencing financial difficulties. We understand everyone’s financial situation is unique, so we offer customized solutions and action plans to manage your debt.
With over 55 years of cumulative experience, we offer simple, practical solutions to overcome your financial challenges in Vancouver, BC, and the surrounding areas, including Coquitlam and Westminster, BC. Contact us today to learn more about the consumer proposal process or schedule a free consultation!