All the credit counsellors consider Consumer proposals as the safest route to become debt free. Thus, if in the past, you had to face stressful debt situations and used the consumer proposal as a medium to get debt relief, you can again go for it years later in case you face a similar situation. In this guide, we have covered all the points that actually help in filing a repeat consumer proposal service in different parts of Canada, be it, Calgary, Edmonton, Alberta or Lloydminster and the procedure ahead.
Steps to file a second consumer proposal
Looking at the advantages of consumer proposal, anyone can file a second or any number of consumer proposals in the same way as they file the first one! So, keep reading on further to know the exact steps for filling a second consumer proposal easily.
- Firstly, you have to start working with a LIT or Licensed Insolvency Trustee. He is the one to analyze the budget and evaluate the amount for creditor repayment.
- Then, the LIT will share the proposal with the creditors for acceptance.
- If most creditors accept the terms, then the proposal will bind on all the creditors. However, it must be noted that no one can file for 2 consumer proposals at one time. It means that once the filing of first consumer proposal is complete, only then, the second one can be filed.
Special Situations to consider
There are 2 more situations that need to be discussed before planning to file second consumer proposal:
- In case if you miss 3 payments of consumer proposal, it is annulled and then, filing for a new one is not possible. At such time, you can just revive this annulled proposal within 30 days or visit court if the number of days are more than that.
- If you incur a new debt while you are repaying via the current proposal, you are neither allowed to file any other consumer proposal nor add the added debt in the current proposal. All you can do is both go for amending or collapsing the proposal and then, go for insolvency as per your financial situation.
Still confused about the number of consumer proposals you can avail in your lifetime? Well, since there is no fixed limit on the number of consumer proposals one may file during his/her entire lifetime, you can file as many as you want however, as mentioned above, you cannot file two consumer proposals at one time.
Some Last Words
With this, you must be aware of all the pointers that you must keep in mind while applying for a second consumer proposal service. Contact Credit720 to get the best help and consultation regarding different credit counseling services and understand the impact of going for a second consumer proposal in no time.