1. Consultation: Becoming debt-free begins with a free, no-obligation initial consultation with a Licensed Insolvency Trustee. The Trustee will review your situation and explain your options.
2. Determine the offer: The Trustee will work with you to determine the amount you offer to your creditors and the amount of your proposed monthly payments.
3. Preparing and Filing: The Trustee will complete the necessary forms and file them with the federal government. Once they are filed, you benefit from a “stay of proceedings,” which means your creditors can no longer take legal action against you (such as wage garnishments) or pursue collection.
4. Notification: Your creditors will be notified of the proposal and have 45 days to vote on it.
5. Vote: If creditors who possess more than 50% of your proven debt approve your proposal, all creditors are bound by it, and the proposal moves forward.
- If creditors possessing more than 50% of your proven debt reject your proposal, the Trustee will help you negotiate. You never have to deal with your creditors directly.
- You are protected from collection efforts and legal action during the voting process.
6. Court Approval: Deemed Court approval is granted unless a creditor objects within 15 days after your proposal is accepted by your creditors. Creditors only object in rare cases. You will only be required to appear in court in the unlikely event that a creditor or the Office of the Superintendent of Bankruptcy has requested that the Proposal Administrator seek court approval.
7. Credit Counselling: You’ll attend two free credit counselling sessions with a licensed credit counsellor registered with Industry Canada. Steve Welker and Company employs accredited counsellors, so you won’t be referred to another organization or agency.
8. Make Proposal Payments: You’ll make payments to the Trustee as agreed-upon during your initial consultation. The Trustee will distribute those funds to your creditors once every 12 months.
9. Completion: You’ll receive a certificate of completion after making all payments to the Trustee and fulfilling your duties. You can then focus on rebuilding your credit and enjoying your new debt-free life.
10. Rebuild your credit: You can begin the process of rebuilding your credit rating after the proposal is complete. This is often done by obtaining a secured credit card that can be used to borrow responsibly and improve your credit history.