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CONSUMER PROPOSALS: HOW MANY ARE REJECTED? - YouTube
Channel: Ira Smith
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consumer proposals how many are rejected
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introduction when people with high debt
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come to see me for their free
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consultation many times I shock them
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they are shocked when I tell them that
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bankruptcy might not be required I then
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tell them about consumer proposals I
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also explain why I think they would be
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able to successfully complete a consumer
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proposal CP and therefore avoid
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bankruptcy what our consumer proposals I
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have written on the topic many times in
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summary a consumer proposal is a
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streamlined process under the bankruptcy
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and insolvency act Canada BIA this
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process allows insolvent people to make
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a formal deal with their creditors this
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government approved debt settlement plan
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is to repay only a portion of what you
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owe and you can take as long as five
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years of regular monthly payments to do
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so to qualify the person must be
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insolvent endo $250,000 or less to all
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creditors other than for any debt
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secured by way of registration against
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your principal residence the person will
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then ask me how many we have done were
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rejected they are trying to determine
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what the odds are for their deal to be
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accepted by their creditors what I tell
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them is that I first do an assessment
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and tell them what a math of offer I
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think they need to make the gain the
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approval of their creditors I also tell
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them that so far anyone who has followed
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my advice has had their consumer
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proposal accepted by their creditors
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therefore the number of those rejected
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by people who follow my advice is zero
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the benefits there are benefits to
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submitting a successful debt settlement
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payment plan sanctioned under the BIA
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the benefits include unlike an informal
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debt arrangement the CP develops a forum
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where each of your unsecured creditors
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have to participate in for your debt
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restructuring you maintain your assets
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and don't have to give them up lawsuits
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against you or your property and
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financial debts or enforcement actions
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such as wage garnishments cannot proceed
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you do not need to submit an assignment
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in bankruptcy the process once prepared
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the CP is submitted to the office of the
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superintendent of bankruptcy Canada OSB
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the government department that controls
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licensed insolvency trustees formerly
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called banker
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see trustees trustee the trustee acts as
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the administrator of the CP once it is
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submitted
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you will quit paying your unsecured
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creditors for past debts the trustee
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will send a notice of the filing along
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with a copy of the CP to all creditors
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affected by the CP this includes anyone
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suing you or garnishing your earnings
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those activities against you will stop
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also your creditors will have 45 days to
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accept or decline the debt settlement CP
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deal if your unsecured creditors are
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disappointed with the proposal they can
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vote against in that case the trustee
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will discuss modifications with you that
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the trustee believes the creditors might
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accept that discussion will take place
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prior to the against vote-counting
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usually this means offering more money
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to them over the maximum 5 year period
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the keys that you have to be able to
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afford to make those higher monthly
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payments it will still be only a portion
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of the total you owe in order for your
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CP to be accepted a simple majority of
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your creditors by dollar value who has
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filed a proof of claim must approve it
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if creditors who have filed a proof of
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claim choose not to vote that is
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considered a vote in favor you also may
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not even need to have a meeting of
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creditors
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unless creditor holding 25 percent in
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dollar value of the claims filed request
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a meeting or the OSB requests a meeting
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there is no need to hold one if the
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meeting is not requested the proposal is
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deemed to be accepted by the creditors
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this is all part of the streamlining
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acceptance and performance if your CP is
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accepted the OSB or any type of other
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interested parties has 15 days to ask
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the trustee to go to court to have the
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deal court approved if no such demand is
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made the debt plan is deemed to have
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actually been accepted by the court more
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streamlining after acceptance and
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approval the person is then accountable
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for making the regular monthly payments
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to the trustee that was promised in the
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debt management plan there will also be
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two counseling sessions for the person
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to attend with the trustee to help them
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with their financial issues and behavior
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if you miss three monthly payments or
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you are greater than three months
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overdue since your last payment the
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proposal will be considered annulled
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this indicates to your creditors that
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they are now able to either resume or
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begin collection actions against you not
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a good thing
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full performance as I previously
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mentioned the person must successfully
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complete the debt management settlement
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plan by making all the required payments
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and attending the to counseling sessions
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when completed the person is entitled to
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receive a certificate of full
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performance this means that you have
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successfully completed the CP and that
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all debts caught by it are discharged
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the trustee will then finalize the
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administration of your debt settlement
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plan get the necessary OSP approval and
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distribute the money to all the
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creditors who have filed a proof of
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claim the administrator also is entitled
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to the government approved fee summary
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are you in financial distress do you not
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have enough funds to pay your bills as
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they come due as a trustee we are the
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only professionals acknowledged
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accredited and also managed by the
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federal government to provide insolvency
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advice and services a consumer proposal
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is a federal government licensed debt
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settlement approach to eliminate your
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debt we will certainly help you to pick
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what is best for you to clear your own
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debt issues call the IRS myth team today
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so we can eliminate the stress anxiety
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discomfort and pain from your life that
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your cash problems have produced with
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the distinct roadmap we develop just for
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you we will swiftly return you right
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into a healthy and balanced problem-free
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life we have years and generations of
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experience assisting people and
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companies looking for debt restructuring
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to prevent bankruptcy you can have a no
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cost analysis so we can help you to fix
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your financial troubles call the IRA
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Smith team today this will certainly
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allow you to go back to a new healthy
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and balanced life starting over starting
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now I hope you enjoyed the video the IRA
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Smith team is available to help you at
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any time we offer a sound advice and a
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solid plan for starting over starting
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now so that you'll be well on your way
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to a debt-free life in no time for more
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information on a no cost basis please
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visit our website or call us our website
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and telephone details are coming right
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up now
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