519-646-2222Proposals can be varied
Did you know that the terms of consumer proposals can be varied? That’s right consumer proposals can be varied to allow for an adjusted payment schedule. It does not serve either your interests, or the interests of your creditors to sabotage your proposal by forcing you to continue to make payments that you can’t afford.
Most proposals are set up for a five-year (60 month) term, your life will change over that time, you may experience family and/or employment changes that affect your ability to maintain the agreed upon monthly payments. Your creditors would rather see you succeed than fail.
So how can you change the amount of your payments? First, they must be justified changes not just because the cost of eating out went up. If you can establish that some unforeseeable even took place that seriously affected your ability to maintain the agreed upon payments your trustee (administrator) can call a meeting of creditors and ask the creditors to accept an amended proposal with new terms allowing you to finish it out.
Your creditors will again be able to vote, so the changes must make commercial sense and you must be up to date on your proposal payments at the time of calling the meeting to amend the proposal.