A consumer proposal is a form of debt reduction approach that is intended to assist consumers who are having difficulty avoiding bankruptcy. It is an arrangement that is established between a person who is insolvent and their unsecured creditors, which allows the insolvent person to pay a substantially reduced part of their debts.
Administrators of consumer proposals are required to carry out the tasks associated with consumer proposals. Find out what a consumer proposal administrator is and what they can do for you by doing some research on the topic.
What is a Consumer Proposal Administrator?
A consumer proposal administrator is a person in charge of running a Consumer Proposal, which is a way to settle the debts that you can file under the Bankruptcy and Insolvency Act.
By legislation, a consumer proposal administrator needs to hold the status of Licensed Insolvency Trustee. No one else in Canada is allowed to submit a consumer suggestion.
However, in order to file a consumer proposal, you will need to be directed to a consumer proposal administrator by the agency that advertised the consumer proposal in the first place.
What Are the Licensing Requirements for Proposal Administrators?
A consumer proposal administrator must be a LIT, or licensed insolvency trustee. In Canada, only licensed professionals are allowed to handle consumer proposals. No professional in the legal or financial industries is qualified to act as a debt consultant.
Licensed insolvency trustees are qualified for this position since they are certified debt experts who work with consumers and businesses in financial distress. Consumer proposals, Chapter 1 proposals, and individual bankruptcies are all part of these offerings.
Certified LITs hold credentials from multiple jurisdictions. They too fall under federal oversight. The Office of the Superintendent of Bankruptcy (OSB) keeps tabs on them to make sure they’re doing a good job and following all the rules and regulations of the profession. The regulations have been established to ensure that Canadians in times of need receive the assistance they require.
The Office of the Superintendent of Bankruptcy has authorized us to operate as consumer proposals administrators. You can look for Risman Zysman in their database as a trustee, and the same goes for any other company or trustee authorized to handle proposal administration.
Is Your Consultation Free of Charge?
We do not charge for consultations, and the client will not be expected to pay anything until we have successfully completed all of the steps necessary to submit his proposal to the government.
The government determines the rates at which we may collect fees. Our fees are deducted from what is ultimately awarded for the proposal. There are no supplementary payments made by debtors to the trustee. There will be no up-front or additional costs incurred for the proposal itself.
This is the standard operating procedure for all consumer proposal administrators, but not all financial advisors. No payments should be expected from you until an agreement has been struck.
Check Referrals and Reviews
People who have worked with our Licensed Insolvency Trustees and supportive staff may best attest to our professionalism. In order to supply the highest quality service, we are committed to hearing what our customers have to say.
We value our customers’ opinions and the time they take to provide them to us. We trust you will find their evaluations to be insightful and useful. The prospect of cooperating with you fills us with excitement.
Check Government Warnings & Don’t Be Pressured
While there has been a general decline in both complaints and inquiries concerning debt settlement organizations, the most common issues consumers have with these businesses continue to center on allegations of both misrepresentation and a failure to perform the service that was promised.
Debt settlement, debt management, debt arrangement, debt reduction, and debt consolidation are all terms that can be used to describe the same set of services. Some service providers may assure you that they may lessen the total amount of debt you have to pay off.
We usually send one follow-up email to make sure you don’t have any additional questions, but you should never feel obligated to sign up for any procedure.
Consult a Second Opinion if Necessary
Identify a qualified consumer proposal administrator, and familiarize yourself with the resources available through the government. Though getting a second opinion is always a good idea, it’s important that it comes from a trustworthy source. Three weeks is the average time it takes for a person to make a call.
It’s critical that you’re confident in your choice for handling your debt. We advise everyone to get as much information as possible before making a choice.
