top of page

Can You Revive an Annulled Consumer Proposal?

Consumer Proposal

In the world of financial management and debt resolution, consumer proposals serve as a more appealing alternative for people in debt when compared to bankruptcy. Typically involving monthly payments, consumer proposals are tailored to the individual’s financial capacity, offering a more realistic approach to debt settlement. Yet, what happens if a consumer proposal is annulled? Can an annulled consumer proposal be revived? This blog aims to share valuable information regarding what can be done in case of consumer proposal annulment.


What Causes a Consumer Proposal to Be Annulled?


The most common reason for consumer proposals to be annulled is the failure to meet the agreed payment terms. In case a debtor misses three consecutive monthly payments, the consumer proposal is automatically annulled. Failing to file and pay your Income Tax is term of default which can lead to annulment if an application is made to court of the default.

When that happens, creditors can resume collection actions for the debts, such seizing assets and initiating lawsuits.



The Complications of Refiling After Annulment


It is a common misconception that once a consumer proposal is annulled, individuals can straightforwardly file a new one. The process is not as simple as it seems. The pathway to refiling often involves legal technicalities, as well as court costs. Moreover, there is no guarantee that you will be granted permission to file a second proposal after the first one was annulled.


Reviving an Annulled Consumer Proposal

Instead of trying to file a new consumer proposal, a more strategic and potentially beneficial option would be to revive the one that was annulled. This needs to be completed within 30 days of the annulment. If the 30-day period is missed, creditors will be able to resume their collection activity against you.


In order to revive an annulled consumer proposal, you will go through renegotiations with your creditors. This requires a clear and transparent presentation of your current financial situation and a convincing plan that ensures compliance with the new terms. This is the reason why having the guidance of an experienced trustee is paramount. Not only they can help you navigate the technicalities of the legal system, but they can also assist you in restructuring the proposal and communicating effectively with your creditors.


The Benefits of Reviving Over Refiling


Choosing to revive an annulled consumer proposal within a 30-day window has several advantages. First and foremost, it allows you to maintain the benefits of the original consumer proposal, such as protection from creditors and structured repayment plan, without the uncertainty of court approval for a new feeling. Moreover, filing a new proposal is no simple task and brings you extra court costs.


Looking for Consumer Proposal Assistance?


Are you facing difficulties navigating the complexities of a consumer proposal? Not sure about what the best action plan is for your financial situation in Belleville, Cobourg, Kingston, and Trenton? Understanding the vulnerability and confusion a lot of people go through when dealing with consumer proposals and bankruptcy, F. J. Zielski & Associates Inc offers personalized advice and effective solutions for your financial situation. Book a consultation and let us guide you through a journey of stability and success.


Leave a comment

bottom of page