Consumer Proposal – Administrators Report
I filed a Consumer Proposal and my trustee tells me that he has to file an Administrator’s Report. I am frightened – what is this?
Your trustee is acting in this situation as the Administrator of your proposal. As such, there is a requirement under the legislation that he submits a report to your creditors that:
1. The proposal was filed with the Officer Receiver who represents the Office of the Superintendent of Bankruptcy
2. Your financial situation and assets listed on your documents are reasonable
3. Your list of creditors (with balances higher than $250) is reasonably accurate
4. Explains what is the cause of your financial problems
5. A brief summary of your net income per month, type of employment, the fact that you do not wish to file a bankruptcy and the amount that the creditors will receive in the proposal. If you and your partner are filing individual proposals at the same time, the joint creditors will be notified of the concurrent proposal so that they realize that they receive payments from both proposals. If the administrator has determined that the payment in the proposal is lower than the creditors would receive in a bankruptcy, there is an obligation to disclose that fact but add any mitigating factors for the creditors to consider before deciding whether or not to vote for or against your offer.
In many cases, the creditors start reviewing your proposal by reading the Report of the Administrator. It is a very important document.
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